Middle East Crude

Saudi Aramco on Wednesday informed its long-term contractors such as energy companies in Japan that Aramco would supply February-loading term cargoes as per contracts. Aramco would supply February-loading term cargoes in line with nominations that term-contractors had submitted to Aramco. One energy company in Japan reckoned that Aramco would supply February-loading term cargoes along with contracts without slashing or increasing supply volumes. In trade for March-loading Upper Zakum, it was widely believed that demand for March-loading Upper Zakum would be firm. Thus, the market for March-loading Upper Zakum was equivalent to the market for March-loading Dubai. France's Total Energies would keep buying cargoes for the purpose of reselling, and end-users in China and India were likely to purchase Upper Zakum as an alternative to Iranian grades and Russian grades, In the market on Tuesday, Total Energies bought 500,000barrles of March-loading Upper Zakum at prices equivalent to March-loading Dubai.

African/European/Russian/American Crude

In the trade of US grades bound for Asia, offers for WTI Midlands for April arrival were raised to premiums of mid-$4.00s or higher to Dubai quotes on a CFR Northeast Asia basis. FOB prices maintained at high levels and freight rates from US to Asia increased, leading to hikes in offers. In the trade of Us grades for Asia, Taiyo Oil on Tuesday purchased 1.80 mil barrels of WTI Midlands and 200,000bbl of WTL at premiums of high $3.00s to Dubai quotes on a CFR basis. India's IOC purchased Nigerian Akpo in its February-loading Mini tender closed on Tuesday this week. The price details were unknown but the seller was said to be US Chevron. IOC was believed to co-load the above Akpo with a term cargo of Angolan crudes for February-loading.

Asia Pacific Crude

In trade for March-loading Brunei grades, Brunei Energy Service Trading (BEST) awarded a Seria Light sell tender to European Glencore. The awarded price was at premiums of 51cts to the OSP. Glencore was expected to resell the cargo. Through the tender with offers valid until January 8, BEST was trying to sell one cargo (600,000barrels) through this tender. In trade for March-loading Australian grades, a supply program of Ichthys condensate was settled and two cargoes would be supplied, which was one cargo less than February-loading. Of these, INPEX held two cargoes for Mar 7-11 loading and Mar 19-23 loading. The company would issue sell tenders for these cargoes soon.