Middle East Crude-Dubai firms on PetroChina's demand

SINGAPORE: Middle East crude benchmark Dubai firmed on Wednesday as PetroChina continued to sweep up February partials on the window.

The Chinese oil major will receive two Upper Zakum cargoes from Unipec and Reliance after Wednesday's trades, bringing its total haul this month to 10 cargoes of the Abu Dhabi grade.

ASIA-PACIFIC CRUDE: Spot premiums for February-loading cargoes fell after refining margins dropped in the region.

Petronas has sold 300,000 barrels of February-loading Bertam crude to Vitol at a premium of $4-$4.50 a barrel to dated Brent, down from a premium of close to $5 a barrel in the previous month.

Spot premiums for February-loading Bunga grades are down by nearly $1 from the previous month. PTT bought the Bunga Kekwa cargo while Glencore purchased the Bunga Orkid cargo.

PTT did not award a tender to buy sweet crude for February-March delivery because the offers were too high.

Condensate remained under pressure from ample supply and the absence of demand from Indonesia. Traders estimated that three North West Shelf (NWS) condensate cargoes loading in February were still available for sale. ConocoPhillips has sold the only Bayu Undan cargo loading in February to Shell at a discount between $4 and $5 a barrel to dated Brent.

Shell said on Wednesday it has begun output at its Prelude floating liquefied natural gas (FLNG) facility in Australia.

A trader said the first condensate cargo may be loaded in March or April even though analysts expect the plant to first export condensate in early 2019.

RUSSIA: Surgutneftegaz will close later on Wednesday a tender to sell five cargoes loading in February. Gazprom has sold its second cargo for the month although the price and buyer were not immediately available. Gazprom's cargo was to load on Feb. 13-23.

ARBITRAGE: China, the world's top oil importer, is set to start 2019 buying little or no crude from the United States despite a three-month truce in a trade scrap between the two nations, with relatively high freight costs and political uncertainty choking demand.