Reliance strikes 4 deals for selling gasoil in 2012

Index heavyweight and India’s largest private sector oil and gas company Reliance Industries Limited (RIL) has concluded at least 4 term contract deals for 2012 in exporting gasoil. Reliance is keeping a close eye on many more prospective buyers say sources with direct knowledge of the matter.

The gasoil that is used as fuel in many sectors of the industry is being sold at a premium of $3.00 to $3.10 per barrel to the Middle Eastern markets for the 500ppm sulphur gasoil variety and in the price range of $4.00 to $4.50 per barrel for the 10ppm category of the fuel.

The exact details of the contract and the quantity have not been disclosed sources said. Traders have said that the quotes for the 500ppm variety are 40% higher than the usual market premium of $2.10 per barrel owing to the current volatile situation of the currency exchange market and various other market conditions. The details of the 10ppm gasoil are known as of yet.

Sources say that the term premiums charged by RIL as in tune with the market prices of that currently prevalent in the Middle East.

Market experts say that the term premiums for the next year are usually higher than that of the current with calculated predictions that the market demand will improve from African and Middle Eastern markets.

The term contracts are a decent indicator of the growth and stability of a company for the coming period say Singapore traders.

The finalizing of contracts come just a day after Reliance Industries regained the numero uno position on the stock market indices indicating improvement of the market conditions in India against the backdrop of the bearish market in the Eurozone regions citing the debt-crisis. Markets experts say that these term levels are up to expectation keeping in mind the potential growth of the region and could improve even further.

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