SINGAPORE: Middle East crude benchmarks slipped on Wednesday but strong demand from traders to get Upper Zakum cargoes that can be delivered to Shell on Platts window pushed up the grade's spot premiums, traders said.
Spot premiums for August-loading Upper Zakum crude cargoes jumped after BP placed a bid for a cargo on Platts window at 40 cents a barrel above its OSP, they said.
Before the window, Exxon Mobil sold some Upper Zakum cargoes at 40 cents a barrel above its OSP, one of the sources said.
Upper Zakum was earlier valued at 15-20 cents above its OSP.
Shell received its seventh Upper Zakum crude cargo from Unipec at the end of Wednesday's window.
Most of the August-loading Qatar Marine crude cargoes have been sold and they traded at a small premium to about 10 cents a barrel above its OSP, traders said.
Japanese refiner Fuji Oil bought an August-loading cargo of Murban crude on Wednesday at a premium slightly above 10 cents a barrel to its OSP.
Formosa bought late on Tuesday Oman crude via a tender at $2.20-$2.30 a barrel above Dubai quotes.
ASIA-PACIFIC CRUDE: PetroleumBrunei has sold two Kimanis crude cargoes via a tender, traders said. The cargo loading on Aug. 1-5 was sold at a discount to its OSP, while the second cargo, loading on Aug. 30-Sept. 3, was sold at a premium.
Petronas offered one cargo each of Bunga Orkid and Bunga Kekwa for August loading in a tender.
ARBITRAGE
Heavy crudes have poured into the United States this spring, offsetting the loss of Venezuelan oil and producing a mini-surplus, with Canadian heavy crude this month being exported from the US Gulf Coast.
The tanker New Dream, chartered by Mercuria, departed on June 16 from Galveston loaded with more than 1 million barrels of heavy Canadian crude, and is headed to Asia, according to vessel tracking data from Refinitiv Eikon and ClipperData.
WINDOW: Cash Dubai's premium to swaps fell 18 cents to $2.13 a barrel despite Shell's purchase of 40 August Dubai partials.
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