SINGAPORE: Qatari condensate premiums held steady in the Middle East crude market on Friday, supported by robust demand from South Korea and tighter supply of the ultra light oil.
South Korean end users have bought four Qatari condensate cargoes for new splitters while supply of the one of the grades, deodorised field condensate (DFC), may have been curbed by problems at a liquefied natural gas (LNG) train, traders said.
Before Tasweeq's tender, Shell, Mitsui and Tasweeq sold a DFC cargo each at $3.20-$3.50 a barrel above Dubai quotes to end users in South Korea and Japan. Tasweeq did not award any cargoes in its tender, traders said.
Tasweeq sold three cargoes of another grade, low sulphur condensate (LSC), for September loading in the tender at premiums between $2 and $2.50 a barrel to Dubai quotes, steady from the previous month, traders said. Trafigura bought one cargo while the other two were purchased by South Korean end users.
Trade in other Middle Eastern crude remained muted as buyers took their time to choose optimal grades amid abundant supply and low demand.
Russia is also offering more ESPO crude after a fire at a refinery near its Pacific coast, though the higher supply and nervousness about the impact of tougher sanctions on Rosneft over Ukraine is weighing on prices.
"People who want to buy ESPO may go to other suppliers, and Rosneft might struggle to find buyers for their cargoes," said a trader with a refinery in North Asia. Other sellers of the grade include Surgutneftegas, Gazprom Neft and Lukoil.
"We will try not to touch ESPO if possible, as we need to observe the situation carefully," the trader said.
The new export volumes - due to a fire that halted output at Russia's Achinsk refinery in June - will amount to two or three 730,000-barrel cargoes each month until the end of the year. This would be on top of the 19 or 20 cargoes per month the port plans to export this year.
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