Middle East Crude

　Saudi Arabia's state-run Saudi Aramco raised its official selling price (OSP) formula for the country's flagship Arab Light (AL) crude for Asia for April-loading by 20cts from the previous month to $1.70 to April-loading Dubai/Oman average. Inter-month spreads for Dubai crude oil in February had widened by 10-20cts from January Thus, Saudi Aramco apparently took it into consideration in deciding the OSPs. Many contractors had predicted that Aramco would keep the OSPs for April-loading unchanged from March-loading for the purpose of increasing sales volumes, so that many market players believed that the OSP was slightly higher than expectations. Aramco also lifted the OSPs for AEL, Arab Medium(AM) and Arab Heavy(AH) along with an increase in the OSP for AL and firm refinery margins for fuel oil in Singapore.

African/European/Russian/American Crude

　In the trade of Sudanese grade, production for Dar Blend has been stopped due to an oil leakage from a pipeline as reported. It later turned out that producers in South Sudan in late February declared force majeure for Dar Blend supply. Malaysia's state-owned Petronas skipped an issuance of March-loading Dar Blend sell tender as reported. A trader in Singapore reckoned that force majeure was still in place for Dar Blend and February and March-loading cargoes would be at least affected. European Vitol earlier took one 600,000bbl cargo of February-loading Dar Blend and the loading was cancelled. The above trader in Singapore said that the trader may need to seek an alternative cargo.

Asia Pacific Crude

In trade for May-loading condensates, a supply program of NWSC was settled and only one cargo was supplied. Briton's Shell held one cargo for May 24-28 loading. Turnaround was scheduled at NWS gas field, which reduced supply volumes, compared to a normal month. Two or three cargoes of May-loading NWSC had been initially expected in the market.

Under this situation, many end-users were worried that the market for NWSC was likely to surge on tight supply/demand fundamentals.