Middle East Crude-Benchmarks steady; NWS condensate discount at over 5-year low

SINGAPORE: Middle East crude benchmarks held steady on Tuesday, while light grades remained under pressure with Australia's North West Shelf (NWS) condensate being sold at the widest discount in more than five years as weak naphtha margins reduced demand in Asia.

ASIA-PACIFIC CRUDE: Chevron sold a cargo loading from April 4 to 8 to an oil major at a discount close to $5 a barrel to dated Brent on a free-on-board basis, the sources said.

The discount is the widest since June 2013, Refinitiv data showed, underscoring weakness in values for light crude and condensate in Asia as poor margins for gasoline and naphtha weigh on markets.

Another NWS cargo loading in early March remained unsold despite recently being offered at $6 a barrel below dated Brent, the sources said, while at least one of the April-loading cargoes was still available.

Separately, Pertamina and Malaysia's Petronas signed an agreement to increase business cooperation, including by swapping crude and exploring investment opportunities, Pertamina said.

Under the agreement, Pertamina will swap crude produced in its Malaysian fields of Kikeh, Kimanis and Kidurong with crude from Petronas' Indonesian fields of Jabung and Ketapang, Pertamina said.

RUSSIA: Gazprom has sold two ESPO crude cargoes loading in April at $2.50-$2.70 a barrel to Dubai quotes, traders said. Chinaoil bought one of the cargoes, while the other one went to an unnamed Chinese state energy company, they said.

Rosneft closed on Monday a tender to sell three ESPO cargoes loading on April 1-6, 11-16 and 21-26.

WINDOW: Cash Dubai's premium to swaps fell 3 cents to 45 cents a barrel.