SINGAPORE: The Middle East crude market remained depressed by excess supply and weak demand in Asia, with only the grades sold on the Platts window supported by Chinaoil, the trading arm of PetroChina.
Shell has again offered Murban at a discount of 40 cents a barrel to its official selling price (OSP) on the Platts window, but there were no buyers.
Unipec and Gunvor will deliver a cargo each of Oman and Upper Zakum respectively to Chinaoil following trades on the window. Chinaoil's robust demand has underpinned Oman and Dubai differentials this month.
December-loading cargoes were still available even though the trading month is drawing to a close, traders said.
"Products inventories are too high before winter," a trader said. "Demand (is) still poor in the region."
Sharp OSP cuts by Gulf producers have failed to revive Asia's demand for crude. Refiners chose to draw down crude inventories for year-end accounting purposes while lacklustre refining margins failed to boost incremental crude demand, traders said.
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