SINGAPORE: Spot premiums for February-loading Chim Sao edged up in the Asia-Pacific crude market on Wednesday as better refining margins buoyed demand and high freight rates curbed the flow of alternative supply from the Atlantic Basin.
PV Oil sold a 300,000-barrel cargo each of Chim Sao to Vitol and BP at about $3 a barrel above dated Brent, traders said, up from $2.50-$2.90 a barrel in the previous month. The cargoes will load on Feb. 11-15 and Feb. 22-26.
Rates for very large crude carriers (VLCCs) on key Asian routes have soared to their highest since 2010, making it difficult for buyers to move African grades eastwards.
Condensate may also gain some support from better crude premiums. North West Shelf (NWS) condensate may trade at $3-$3.50 a barrel below dated Brent, traders said, up from $3.40-$3.70 a barrel in the previous month.
Still, premiums are capped by ample supply as Russia and Malaysia have brought new fields online.
Brent-Dubai Exchange of Futures for Swaps (EFS), or Brent's premium to Dubai swaps, edged up 4 cents to $2.02 a barrel for February.
TENDERS
Russia's Rosneft offered three cargoes of Sokol crude for loading on Feb. 4-7, Feb. 16-19 and Feb. 19-22 in a tender to close on Dec. 18.
REFINERIES
Japanese oil refiners are likely to shut 11 crude distillation units (CDUs) and condensate splitters in 2015 for scheduled maintenance, down from 20 this year, industry sources said.
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