Markets

Asia-Pacific Crude-More cargoes sell at lower premiums

Published April 5, 2016 Updated April 5, 2016 01:38pm

SINGAPORE: The Asia-Pacific crude market remained weak on Tuesday after more May-loading cargoes were sold in tenders at lower premiums.

PTT bought 300,000 barrels of Kidurong from Murphy Oil in its tender, in addition to the 1 million barrels Azeri Light and an unknown volume of Vietnamese Hai Thach crude.

The Kidurong was likely sold at a premium below $3 a barrel to dated Brent.

Separately, Petronas has sold a May 3-9 Bunga Kekwa crude cargo to a trader at levels lower than the $1.50-$1.90 a barrel premium fetched in an earlier deal.

For condensate, Petronas has sold three cargoes for May. The first cargo was an unusual sale of Kimanis condensate to a trader likely to be Trafigura at a premium to dated Brent. The 250,000-barrel cargo was for May 1-12 loading.

Petronas has also sold 320,000 barrels of Cakerawala condensate to a South Korean end-user at $2.50-$2.70 a barrel above dated Brent for May 12-21. A 300,000-barrel cargo of Muda condensate was awarded to an oil major at a premium to dated Brent for May 12-18 loading.

Brent's premium to Dubai swaps, or Brent-Dubai Exchange of Futures for Swaps (EFS) was up 17 cents at $3.23 a barrel for June.

REFINERY

Chinese state-controlled commodity trader Guangdong Zhenrong Energy Co Ltd has won approval from the Myanmar government to build a long-planned $3 billion refinery in the Southeast Asian nation, two company executives said on Tuesday.

MARKET NEWS

India is set to import at least 400,000 barrels per day (bpd) of Iranian oil in the year from April 1, with refiners looking to ramp up purchases after the sanctions targeting Tehran ended in January, industry sources said.

At least three European trade houses are keeping gasoline aboard long-range tankers in Asia in a very rare move as the market is badly hit by oversupply, traders said.

All signs suggest a meeting of OPEC and non-OPEC oil producing countries in Doha on April 17 will produce an initial agreement to freeze output, Kuwait's OPEC governor Nawal Al-Fuzaia said on Tuesday.

Russian Energy Minister Alexander Novak said on Monday he may meet his Saudi Arabian counterpart before the planned oil producers' meeting on April 17.

Copyright Reuters, 2016