GS Caltex pumps up sales of gasoline, diesel cargoesGS Caltex has started selling a total of three additional gasoline and diesel cargoes each month after its new vacuum gasoil fluidized catalytic cracking (VGO FCC) hit full capacity in May, industry sources said yesterday.
The new 53,000-barrel-per-day (bpd) VGO FCC will boost GS Caltex’s gasoline exports via two additional cargoes to about 180,000 tons a month, up from 90,000 tons to 120,000 tons, they added.
“We cannot avoid the increased capacity, but the gasoline market is flooded with cargoes now,” said a trader, adding that additional supply in a bearish market would weigh on sentiment.
Peak demand in Asia is mostly over, but supplies are on the increase due to additional capacity.
The weaker market was reflected in the sharp losses seen in the Asian gasoline margin, which dropped to $3.37 a barrel on Aug. 23 from a more than four-year high of $16.98 on July 15.
The new secondary unit from GS Caltex also produces one diesel cargo a month. But the Asian diesel market is also facing surplus supplies, as India was seen to be pushing out more cargoes.