New Refining Hits Mideast Jet But Not Diesel Term Premiums

摘要

A rush of new refining capacity in the Middle East has eroded jet fuel term premiums for the last three years in a row but has yet to dent diesel differentials. Calendar 2016 diesel term premiums have just been agreed at higher levels than last year, despite chronic oversupply in the target European export market (JFI Nov.16’15). Abu Dhabi National Oil Co. (Adnoc) has agreed a $2.50 per barrel premium over its formula -based on both the mean of Platts and Argus Arab Gulf high-sulfur gasoil assessments -for calendar 2016 diesel volume, up from the $2.35/bbl premium agreed for July 2015-June 2016 barrels. Exports are still rising from Adnoc’s new 417,000 barrel per day Ruwais West refinery, which has recently been running at up to 90% capacity after suffering repeated problems with its gasoline train over the summer. Rival Bahrain Petroleum Co.