SINGAPORE: Russian and Middle East light grades came under pressure on Thursday, faced with competition from rising arbitrage supplies from the United States and Europe.
Total offered a July-loading Murban cargo on RIM at 5 cents above its OSP, down from earlier trades at premiums of 20-25 cents.
Russian Sokol crude premium for July fell to the lowest in two months after ONGC sold 700,000 barrels of the crude loading on July 20-26 at about $4.50 a barrel above Dubai quotes, traders said, down from earlier deals at premiums of $5.10-$5.30.
Surgutneftegaz offered an ESPO cargo loading on July 9-13 in a tender to close on May 24.
ARBITRAGE: China will import record volumes of US oil and is likely to ship more US soy after Beijing signalled to state-run refiners and grains purchasers they should buy more to help ease tensions between the two top economies, trade sources said on Wednesday.
Sinopec's trading arm Unipec has bought 16 million barrels, or about 533,000 barrels per day, of US crude to load in June, they said, the largest volume ever to be lifted in a month by the company and worth about $1.1 billion.
WINDOW: Cash Dubai's premium to swaps was unchanged at $1.26 a barrel. Gunvor will deliver an Upper Zakum cargo to Petro-Diamond following the trades. This is the sixth Upper Zakum cargo delivered on window this month.
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