Crude/Condensate: Nov 1-5: CFR Northeast Asia WTI surges
In the OTC market for Abu Dhabi grades, term talks for Upper Zakum for January to December 2022 loading were seen settled between equity holders and traders or Chinese end-users. Most of the term prices were heard at premiums of 9-10cts to OSP. The term prices for Upper Zakum with a loading tolerance of 0.2% were seen lower than the above level.
African/European/Russian/American Crude The CFR Northeast Asia market of US WTI surged $7.75-7.85 to Dubai quotes. The CFR Asia market for the US grade surged on rising freight rates, widening EFS spreads, along with healthy demand in US and Europe. A total of 4.0 mil bbl of WTI Midlands and WTI Light was heard done for South Korea for December-loading or February arrival. The buyers were end-users in South Korea and the price was heard at a premium of high $7.00 to Dubai quotes on a CFR basis.
Asia Pacific Crude Vietnam's state-owned PV Oil sold January to June 2022 loading T.G.T. at a premium of low-$3s to DTD Brent in its term sell tender closed on Oct 19. It later turned out that the buyer was China International United Petroleum & Chemicals Co (UNIPEC). UNIPEC purchased massive volumes of December-loading West African cargoes and was believed to have strong demand.
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