SINGAPORE: The Asia-Pacific crude market held steady on Monday as traders eyed July-loading volumes from Malaysia and Vietnam, while differentials for Dubai-linked Russian grades could be supported by a Brent's widening premium over Dubai quotes.
State-owned PetroVietnam will issue the first tender for its Thang Long crude stream this week, as it ramps up production at the Thang Long and Dong Do fields, an industry source said.
The company is expected to offer 200,000 barrels of the crude, which has an API of around 37.5, the person said.
The two new fields are operated by the Lam Son Joint Oil Co, an equally-owned venture between Petronas Carigali Overseas Sdn Bhd and Petrovietnam Exploration Production Corp (PVEP).
Taiwanese refiner Formosa has bought its first cargo of Latin American crude, trade sources said on Monday, as it widens the variety of crude grades processed at its plants.
Formosa bought 1 million barrels of Ecuadorian Oriente crude for delivery between July 20 and August 20 at $2.50-$3 a barrel below Dubai quotes on an ex-ship basis, the sources said.
"I'm sure we'll see more Latin American crude coming to Asia," a trader said.
Under a service contract, China National Petroleum Corp (CNPC) and Sinopec produce Oriente crude at Tarapoa and Lagro Agrio blocks in Ecuador on behalf of state-run Petrecuador. Their fees are paid with crude that is exported.
Brent's premium over Dubai swaps continued to rise, with Brent-Dubai Exchange of Futures for Swaps (EFS) widening 27 cents to $4.85 per barrel, the highest since late-September last year.
The widening gap supports Dubai-linked crudes like Russian Sokol and ESPO, as it makes them more attractive for Asian refiners. Differentials for both grades improved last week.
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