Crude/Condensate:Jun 22-26: Aug Murban sinks to OSP -70cts
Middle East In the trade of Abu Dhabi light grades, end-users in Japan such as ENOS Corp (Former JXTG Nippon Oil & Energy), Cosmo Oil, Idemitsu Kosan and end-users in India like Reliance Industries Limited purchased Murban for August-loading on Wednesday. It later turned out that Cosmo Oil bought Murban from European Vitol at a discount of around 70cts to OSP. Reliance appeared to have purchased additional Murban at Dubai linked prices. Reliance last week purchased 2.0 mil bbl of Murban from Aramco Trading at Dubai linked prices. Murban were glued to hefty discounts as the latest OSP was sensed as expensive. In addition, producers like Saudi Aramcop skipped supply cuts for light grades led by Arab Extra Light (AEL).
Africa/Europe/Russia/America Spot differentials for August-loading East Siberian ESPO slipped. Freight rates for long-haul tankers dropped, so that more arbitrage cargoes like African and Brazilian cargoes, competing grades for ESPO, could flow into Asia, which weighed on the ESPO values. European Trafigura sold an August-loading ESPO cargo. The details of the buyer were unknown but the price was said to be at a premium of $3.00-3.10 to Dubai quotes.
Asia/Pacific In trade of Australian heavy grades, production of Van Gogh was expected to restart in the fourth quarter of this year at earlier. As reported, Van Gogh ceased production as the floating production, storage and offloading (FPSO) facility entered maintenance since April. The production was initially believed to restart in the latter half of this year, but was growingly unlikely at least through September. The delay came from the COVID-19 expansion. A market source said that maintenance works on the FPSO at the dry dock in Singapore are extended due to the COVID-19 impact.
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