Published: Tuesday June 25, 2013 MYT 8:13:00 AM
Asia-Pacific Crude-Malaysia, Vietnam grades firm
SINGAPORE: Malaysian and Vietnamese crude for August were sold at steady to slightly higher premiums than the previous month, supported by limited supply and improved refining margins.
Russian Vityaz stayed under pressure from competing light grades in the market.
In Japan, demand for crude and fuel oil is most likely to disappoint over the upcoming peak summer demand season, Vienna-based consultancy JBC Energy said in a note.
"We expect crude and fuel oil demand to fall by 90,000 barrels per day (bpd) or 17 percent to average 440,000 bpd this year," the consultancy said.
"This is also one of the main factors behind our bearish outlook for Japan this year, where we expect oil demand to decline by 185,000 bpd after growing by 250,000 bpd in 2012."
- Sakhalin Energy sold a Vityaz cargo for September loading to a Chinese end user at premium slightly lower than the $3.80 a barrel fetched for an August cargo sold via a tender last week.
The Russian producer is in talks to sell two remaining cargoes for August loading.
- Mitsui and Woodside sold one August loading North West Shelf (NWS) condensate cargo each at discounts of between $5 and $6 a barrel to dated Brent to a Chinese end user and ExxonMobil, traders said.
The deals, which could not be independently verified, may have been at slightly wider discounts than an earlier deal between BHP and Petrobras as naphtha cracks weakened last week, a trader said. BHP had sold a cargo to Petrobras at between $5 and $5.50 a barrel to dated Brent, he said.
- Petronas has sold an August Kikeh cargo to BP at between $6.20 and $6.30 a barrel above dated Brent, steady from July.
- Petronas has sold the only 300,000-barrel Tapis cargo for August at a premium of about $6 a barrel to dated Brent to a domestic refinery.
The premium is higher than expected as domestic refineries get a tax rebate from using locally produced crude, traders said.
- PV Oil sold 350,000 barrels of Ruby crude to Taiyo Oil at about $1.50 a barrel above dated Brent for Aug. 9-15 loading. The premium was slightly higher than that for July.
- Petronas sold 450,000 barrels of Bunga Kekwa crude for loading on Aug. 19-25 to a trader at $4.50-$5 a barrel above dated Brent.
- Murphy Oil offered 300,000 barrels of Kidurong crude for loading on Aug. 20-30.
The tender will close on Wednesday.
- PV Oil offered 600,000 barrels of Bach Ho crude for Aug. 1-20 loading in a tender to close on June 25 with bids valid until June 27.
- More details emerged for Rosneft's Sokol tender. Japanese refiner JX Nippon and South Korean refiner SK Energy bought a cargo each at premiums of $6.20 a barrel and $5.90 to Dubai quotes.
The cargoes will load on July 25-Aug. 3 and Aug. 16-25.
- Taiwanese refiner CPC Corp issued a tender seeking August loading sweet crude. The tender will close on June 24 with offers valid until two days later.
* MARKET NEWS
- Japanese refiner Cosmo Oil Co has bought Kazakhstan's CPC Blend light crude for the first time as it searches globally for attractively priced barrels, an industry source familiar with the matter said.
About 1 million barrels of May-loading CPC Blend have been delivered to Cosmo Oil's refineries this month, added the source, who declined to be identified.
- Russia's Rosneft agreed a $270 billion deal to double oil supplies to China on Friday, as the Kremlin energy champion shifts its focus to Asia from saturated and crisis-hit European markets.