SINGAPORE: More Vietnamese crude cargoes loading in July were sold at steady premiums from the previous month, underpinned by firm demand from Shell, traders said on Tuesday.
Shell bought 300,000 barrels of Chim Sao in PV Oil's tender at $1.50 a barrel above dated Brent, they said. The premium for the cargo loading on July 9-13 was at the higher end of the range seen for June cargoes.
Shell also bought one of the two Ruby cargoes from PV Oil. The cargoes loading on July 5-11 and 19-25 were sold between parity and $1 above dated Brent.
Russian ESPO premiums held steady for cargoes loading in the first 10 days of July. Gazprom Neft sold a cargo to Shell at $2.50 a barrel above Dubai quotes, while Trafigura's cargo was purchased by an oil major, possibly BP, at a premium of $2.80 a barrel, traders said.
Rosneft has likely sold its July 23-27 cargo to China at a premium of more than $3 a barrel, they said.
Brent's premium to Dubai swaps, or Brent-Dubai Exchange of Futures for Swaps (EFS) edged down 10 cents to $3.40 a barrel as the European benchmark weakened.
"Across Asia and Europe, forward margins have weakened significantly, reducing the appetite to buy crude in advance, especially since the material flattening of the Brent contango reduces the incentive to store crude as well," Energy Aspects said in a note.
REFINERY
Japan's Cosmo Oil Co said on Tuesday it is preparing to restart the 100,000 barrels-per-day (bpd) No.1 crude distillation unit (CDU) at its Chiba refinery in coming days, after an unplanned shutdown due to a boiler fire last Friday.
Exxon Mobil said on Tuesday that production at its two refineries in France was at normal levels after a limited number of employees joined a nationwide strike that has hit the French oil sector and disrupted supplies.
MARKET NEWS
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