SINGAPORE: Asia-Pacific condensate weakened on Wednesday due to a rise in exports from Malaysia.
Petronas has offered its first Kimanis condensate cargo for export in five months on lower domestic demand and as output of the super light oil could increase, industry sources said.
The Malaysian state oil company offered a 250,000-barrel cargo loading on May 22-26, they said.
The condensate is usually processed at a splitter in Kerteh, Malaysia, which has been shut for maintenance, the sources said.
Petronas is expected to increase its natural gas output, which would lead to higher production of Kimanis condensate, up from the current 5,000 barrels per day, one source said.
Sales of North West Shelf (NWS) condensate remained in a stalemate. Sellers have cut offers from $4 a barrel above dated Brent, but buyers were still eyeing lower levels, a trader said.
Brent's premium to Dubai swaps, or Brent-Dubai Exchange of Futures for Swaps (EFS), edged up to $2.91 for May.
*MARKET NEWS
A deal among some OPEC producers and Russia to freeze production is perhaps "meaningless" as Saudi Arabia is the only country with the ability to increase output, a senior executive from the International Energy Agency (IEA) said on Wednesday.
Commodity trader Gunvor Group on Tuesday reported a record net profit of $1.25 billion in 2015, boosted by asset sales and stronger earnings from trading and refining.
Trading houses are betting on oil markets remaining oversupplied for at least two more years even as crude prices stage a recovery driven by early signs of falling production.
Japan's Bank for International Cooperation (JBIC) said it signed a loan agreement on Tuesday with Japan's Sodeco for up to $450 million to help finance development of the Sakhalin-1 project's Odoptu field stage-2 program in Russia's Far East.
Woodside Petroleum and its partners have shelved plans to build the $30 billion Browse floating liquefied natural gas (LNG) project off Australia in the face of global oversupply, spelling the end of an era of mega LNG projects.
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