SINGAPORE: The Asia-Pacific crude market strengthened on Tuesday as differentials for Russian and Vietnamese grades improved on higher demand from regional refiners planning to ramp up runs after seasonal maintenance.
Gazprom-led Sakhalin Energy sold three cargoes of Vityaz crude at higher differentials than last month, a trader said. One cargo loading July 26-Aug. 3 was sold in a tender at around $5.50 per barrel above Dubai quotes.
Two August-loading cargoes were sold at slightly higher premiums, while another two cargoes loading in the month will be offered to the market in June, the trader said. The buyers were not immediately known.
Light, sweet Vityaz last traded at a premium of around $5.30 per barrel for a cargo loading July 3-10, according to Reuters data.
Dubai-linked grades were supported by Brent's recently widening premium over Dubai swaps. Brent-Dubai Exchange of Futures for Swaps (EFS) narrowed 5 cents to $4.80 per barrel, still near an eight-month high.
PV Oil, the marketing arm of state-run PetroVietnam, may have awarded two cargoes of Chim Sao loading in July in a tender at $4.80-$4.90 per barrel and $5.20-$5.40 per barrel above Dated Brent, traders said.
The buyers may have been Shell and Petrobras, they said, although the deals could not be independently verified. Chim Sao was sold last month at a premium of around $4.80 per barrel, according to Reuters data.
Traders were awaiting offers from Malaysia's Petronas for July-loading cargoes. The company last week withdrew a tender to sell Labuan crude.
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