Middle East

　Spot differentials for July-loading Abu Dhabi Murban gained. Producers cut reductions, which tightened demand/supply fundamentals and boosted the market. An end-user in India seen as Nayara Energy on Wednesday was said to have purchased one cargo of Murban. The identity of the seller was unknown but the cargo fetched a premium of around $1.50 to OSP. Elsewhere, an end-user in Thailand also heard purchased Murban so far, though the seller was unknown. An end-user in Northeast Asia said, "Supply cuts by Saudi Arabia and Abu Dhabi were made for overall end-users in Asia such as India and South East East, lifting the market for spot differentials for Abu Dhabi grades such as Murban."

Africa/Europe/Russia/America

　Spot differentials for July-loading East Siberian ESPO Blend surged. In addition to recovery of Chinese demand, competing Middle Eastern grades rose, which supported the ESPO market. Russian producer Surgutneftgaz sold two ESPO cargoes for Jul 6-13 and 9-16 loading via its additional sell tender closed on Tuesday at premiums of slightly above $3.00 to Dubai quotes as reported. The buyers were traders but these cargoes were said to be eventually placed to Zhenhua Oil in China. On the other hand, a buying spree from China showed signs of pausing and a number of tankers were awaiting at ports in China as reported. Under the circumstances, some market players said that the current price levels were seen overvalue. As for the background, "A few players had short positions for China and the traders paid high prices as they were forced to cover shorts, which lifted the prices," said a player in Northeast Asia.

Asia Pacific

　For July-loading Vietnamese grades, PV Oil awarded its sell tender for Ruby closed on Tuesday. It was believed that the company sold 300,000bbl of Ruby for 19-25 loading. The price was said to be at a premium of over $2.00 to Dated Brent. As for the winner, China International United Petroleum & Chemicals Co (UNIPEC) was cited. In the previous June loading, Ruby was awarded at a discount of mid-$1.00 to Dated Brent as reported. Meanwhile in other trade of Vietnamese grades, Song Doc would be no longer supplied after July due to aging and drying oil fields. The last cargo would be shipped in July. In recent years, only one cargo was supplied every four to six months with the previous two cargoes shipped in January 2020 and September 2019.