SINGAPORE: Vietnam's state oil marketer PV Oil sold via tender 250,000 barrels of Song Doc crude for loading in May at a record premium on strong demand for sweet crude in Asia. Demand for sweet crude in Asia, particularly distillate-rich grades, is strong as Japan is soaking up supplies to burn at power plants after a massive earthquake and tsunami damaged nuclear plants, causing an electricity shortage.
Gas oil cracks held at a one-week high as signs of firm spot demand from India and Vietnam outweighed the prospect of lower Japanese imports. The Song Doc cargo was sold to an oil major at a premium of $10.50-$11.00 a barrel to Minas formula, a person with direct knowledge of the deal said. In the previous Song Doc tender, PV Oil sold an April-loading cargo of the same size to ExxonMobil at a record premium of more than $7.50 a barrel to the Minas formula, traders said at the time.
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