SINGAPORE: Spot differentials for February-loading cargoes in the Middle East crude market rose on Friday amid brisk demand after producers slashed official selling prices (OSP), traders said.
The premium for Abu Dhabi's flagship Murban grade rose to 30-40 cents a barrel to its OSP, up from a premium of 22 cents earlier this week, traders said. The grade traded close to parity for January.
Das Blend rose to a premium of 50-60 cents a barrel to its OSP, up from a single-digit premium last month, a trader said.
Banoco Arab Medium may have traded at 45 cents a barrel above its OSP, another trader said. That compares with a premium of 20 cents a barrel earlier this week and a discount of about 10 cents last month.
Sakhalin Energy sold two cargoes of Russian Vityaz crude loading in February to Chinese buyers at around $1.50 a barrel above Dubai quotes, a trader said. The premium was in line with earlier February cargoes and January-loading cargoes.
India's ONGC offered 700,000 barrels of Sokol crude for loading Feb. 20-26 in a tender that closes Dec. 16 with bids valid until the following day.
Qatar's Tasweeq offered two cargoes of heavy sour al-Shaheen loading Feb. 18-19 and Feb. 26-27 in a tender that closes Dec. 15.
Rates for very large crude carriers (VLCCs) on key Asian routes are likely to hold firm next week but are unlikely to continue the surge seen earlier this week, brokers said.
China's state-run oil trader, Zhuhai Zhenrong Corp, has renewed a pact with National Iranian Oil Company to buy the same volume of Iranian crude supplies in 2015 as it did this year, two industry officials with direct knowledge of the deal said on Friday.
Zhuhai Zhenrong will lift a total of 12 million tonnes, or about 240,000 barrels per day (bpd), of Iranian crude next year.
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