July 31, 2012:

Exxon Mobil Corp has offered fewer Asian benchmark gasoil cargoes from its Singapore refinery for July and August than in previous months, traders said on Tuesday, helping push up premiums for the grade. The company offered about four cargoes of gasoil with 5,000 parts per million (ppm), or 0.5 percent, sulphur a month for July and August, down from 6-8 cargoes of the grade in previous months, they said. Instead it has been offering more gasoil with 10,000 ppm, or 1 percent, sulphur, they added. The reduction in volumes for 0.5 percent sulphur gasoil is likely due to partial maintenance at the company's integrated 605,000 barrels per day (bpd) refining complex in Singapore, traders said. This could not be confirmed, however.

An Exxon Mobil spokeswoman said the company does not typically comment on operational issues. While the units affected and the duration of maintenance were not immediately known, one trader said a "sulphur treating unit" was included. A second trader said maintenance could have already finished or was at least close to ending, with September cargoes expected to resume as normal. With Royal Dutch Shell conducting partial maintenance at its 500,000 bpd Singapore refinery from mid-July, supplies of gasoil, especially the high-sulphur variety, have been tight and driving up premiums, traders said. Cash premiums for 0.5 percent sulphur gasoil, which is the benchmark grade in Asia, shot up to an eight-month high last week, Reuters data showed. Demand for the grade, however, has been strong with countries such as Indonesia and Yemen seeking huge volumes for August onwards.

By Reuters