Middle East Crude-Benchmarks edge higher; tenders eyed

SINGAPORE: Middle East crude benchmarks extended gains on Wednesday while traders eyed results from tenders to gauge price direction for March-loading cargoes.

MIDEAST CRUDE: Japanese refiner Fuji Oil has bought two Qatar Land crude cargoes via a tender at discounts of about 10 cents a barrel to its official selling price (OSP), trade sources said.

Petro-Diamond and P66 sold the cargoes, they said. The discount was narrower than the previous month.

Qatar Petroleum and BAPCO are expected to award their sell tenders by end-Wednesday.

Prior to that, Equinor has sold a March-loading Banoco Arab Medium crude cargo probably at 20 cents a barrel below its OSP, traders said.

RUSSIA: Russian ESPO crude premiums for cargoes loading in March have climbed from the previous month as China's demand has picked up, trade sources said.

Chinese independent refiners, also known as teapots, are now more actively seeking cargoes for delivery in March and April after a demand trough in February because of Lunar New Year, they said.

The recent recovery in global oil prices has also improved the outlook for China's domestic fuel prices, one of the sources said.

Oil producer Surgutneftegaz has sold two ESPO crude cargoes at premiums between $3.10 and slightly above $3.20 a barrel to Dubai quotes in a tender awarded late on Tuesday, the sources said.

Unipec and Glencore bought the cargoes that will load on Feb. 28-March 5 and

March 4-9, they said.

ASIA-PACIFIC CRUDE: Malaysia's Kimanis crude oil exports will rise to 10 cargoes in March, compared with nine in the previous month, industry sources said. Petroleum Brunei closed on Wednesday a tender to sell a Kimanis cargo loading on March 1-5.