Lower oil prices stoke demand from Vietnam

[SINGAPORE] Lower oil prices have stoked demand from Vietnam, with the country's top fuel importer seeking a spot cargo after earlier buying diesel for December, traders said.

Brent crude oil traded below US$60 a barrel on Wednesday, near 5-1/2 year lows, as major oil producers signalled that they would maintain output despite a supply glut and faltering demand in Russia and Europe.

Vietnam's demand could be returning though end-users are likely waiting for prices to bottom before buying more volumes, an industry source said.

Inventory is being kept to a minimum at the moment, the source added.

India's Essar Oil likely sold 500 ppm sulphur gasoil for Jan 5 to 15 loading to Vitol at a premium of US1.20 a barrel to Middle East quotes, traders said, though this could not immediately be confirmed.

Spot demand appeared out of Egypt, which also helped boost sentiment.

Tanzania's oil importers bought 166,607 tonnes of 50 ppm sulphur diesel, 15,065 tonnes of jet fuel and 1,150 tonnes of kerosene from Geneva-based trader Augusta Energy, traders said.

Augusta's offer was the lowest of three, with the other two placed by Gapco Kenya and Addax Energy.

TENDERS - Petrolimex is seeking 35,000 tonnes of 500 ppm sulphur gasoil for Jan. 5 to 15 loading from either Singapore, Thailand, South Korea, Japan or Taiwan. The tender closes on Dec. 18 and is valid until Dec 22.

- Egyptian General Petroleum Corp is seeking three cargoes of 34,000 to 36,000 tonnes each of 0.1 per cent sulphur gasoil for Jan 8 to 10, Jan 11 to 13 and Jan 14 to 16 delivery into Suez. The tender closes on Dec 17 and is valid until Dec. 24.

REUTERS