Crude/Condensate: May 17-21: Rongsheng buys six VLCCs of Jul Middle Eastern grades
China's Rongsheng Petrochemical purchased a total of six VLCCs of crudes in its July-loading crude buy tender. All of the cargoes were Middle Eastern grades. The purchasing volume doubled from the company's June procurements, or three VLCCs. Demand apparently recovered as refining volumes increased after an end of maintenance. The details such as volumes for each grade, and sellers were unknown but the company procured six grades - Oman, Abu Dhabi Murban, Das, Upper Zakum and Basrah Light and Basrah Medium.
In the trade of July-loading East Siberian grades, Surgutneftgas closed the third sell tender for ESPPO (Jul 19-22, 23-20, 27-31 loading) on Wednesday. It later was heard that the buyers were British BP, European Vitol and Gunvor. The prices were at premiums of $2.90-3.20 to Dubai quotes.
Spot differentials for July-loading Malaysia's Labuan rose to premiums of $2.15-2.25 to DTD Brent. Spot supplies for July-loading regional grades were extremely tight as sell tenders for Vietnamese grades like Chim Sao were not issued, which buoyed Malaysian grades like Labuan. Malaysia's state-run Petronas sold a Labuan cargo in the spot cargo in the middle of this week. While the details of the buyer were unknown, the price was said to be at a premium of low-$2s to DTD Brent.