Kuwait Seals 2015 Gasoil Term At $1.30/bbl Premium, Down 42%

Kuwait Petroleum Corp (KPC) has sealed its 2015 gasoil term deal with buyers at a premium of $1.30 a barrel to Middle East quotes on a free-on-board (FOB) basis, down 42 per cent versus its 2014 deal, industry sources said on Tuesday.

KPC had also sealed its 2015 jet fuel deal at $1.80 a barrel premium to Middle East quotes.

The middle distillates market was hit by high supplies this year compared to last, which may have affected the term premium.

Gasoil and jet fuel cracks were weak before they recovered to multi-month highs on Monday due to stronger regional demand.

The lower underlying crude oil prices had also helped push the margins up.