SINGAPORE: The Asia-Pacific crude market found continued support from robust refinery demand, with traders awaiting the results of a flurry of import tenders.
Regional refiners have increased crude buying this month to benefit from strong profit margins. Last month, the market strengthened due to buying for storage, but Brent's contango curve has flattened and storage facilities are nearing their capacity.
"The market seems to be driven more by end-user demand this month," a trader with an oil producer said.
Several cargoes of April-loading Malaysian crude were still available. Petronas offered Labuan at around $5.50 a barrel above dated Brent, but hasn't found buyers yet, traders said.
Petronas sold a cargo of Tapis, traders said, although the details of the deal were not available. One trader valued the light sweet grade around $2.50 a barrel above dated Brent.
Woodside sold an April-loading cargo of heavy sweet Vincent crude around $3 a barrel above dated Brent, a trader said, about $1 a barrel stronger than the previous month. The buyer was not known.
Rates for very large crude carriers (VLCCs) on key Asian routes could recover next week if chartering activity rises with China's return from the Lunar New Year holidays, brokers said.
VLCC rates from the Middle East and West Africa are at their lowest since Nov. 20, pushed down by lower chartering activity due to Chinese New Year, Reuter’s freight data and ship brokers said.
West African exports to Asia in March will be largely flat compared with the previous month, traders said.
Brent-Dubai Exchange of Futures for Swaps (EFS), or Brent's premium to Dubai swaps, widened 1 cent to $1.96 a barrel.
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