Middle East Crude

The Chinese government released crude oil led by Middle Eastern grades from the Strategic Petroleum Reserves (SPR) in its sell tender closed on Friday. China's Hengli Petrochmical purchased Oman and Abu Dhabi Upper Zakum. In addition, PetroChina bought Qatar Marine and North Sea Forties. These grades were awarded at flat prices and these cargoes were awarded at $65-70. Buyers were required to receive these cargoes within 60 days. A total of 7.40 mil bbl of crude grades including Abu Dhabi Murban, on top of the grades as mentioned above, were offered in the tender. Buyers did not bid for Murban, so that Murban was not awarded. An end-user in China says, "Participants in the tender were limited on economic aspects."

African/European/Russian/American Crude

Spot differentials for November-loading East Siberian ESPO were quoted at premiums of $4.45-4.55 to Dubai quotes. The market retreated slightly from last week's highs but the values remained way above Sokol levels as demand from China's independent oil refiners remained healthy. Russian producer Surgutneftgas sold end-November cargoes in its third sell tender closed on Sep 17. Of these, at least one cargo was heard purchased by China National Chemical Corp (ChemChina). The price was heard at a premium of $4.50 to Dubai quotes.

Asia Pacific Crude

Spot differentials for November-loading Australian NWSC strengthened to premiums of 75-85cts to DTD Brent. While spot deals for November-loading NWSC were not heard so far, "Considering continued firm crack margins for naphtha in Asia and stronger prices for overall regional grades for November-loading from the previous month, the NWSC market would have risen to premiums of 70-90cts to DTD Brent," a Singapore trader pointed out. Meanwhile, US Chevron had November-loading NWSC and the major was said to have offered the cargo to a November arrival condensate buy tender for the Indonesian petrochemical firm TPPI.