Wednesday, 16 August 2017 | 18:12
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Middle East Crude-Dubai flips to positive

Saturday, 12 August 2017 | 00:00

Middle East crude benchmark Dubai flipped into positive territory on Friday as robust Asian demand continued to underpin spot premiums for October-loading cargoes, especially light sour grades. UAE: Sellers have raised their offers for October-loading Murban and Das to 40 and 35 cents a barrel above their respective OSPs in response to robust demand. Total has sold 2 million barrels of September-loading Murban crude to an Indian refiner, traders said. The price and buyer were not immediately known.

The sale could tighten spot Murban supplies this month, one trader said.

RUSSIA: ONGC sold 700,000 barrels of Russian Sokol crude via tender at highest premium in seven months, supported by tighter October supplies as the oilfield returns from maintenance that month. A South Korean end-user bought the cargo loading on Oct. 11-17 at about $3.70 a barrel above Dubai quotes.

WINDOW: Cash Dubai flipped to a premium of 3 cents to swaps after Shell bought most of the October partials on window. Trafigura bid for one cargo each of Upper Zakum and Das at Dubai minus 35 cents and 10 cents above OSP, respectively.

Unipec-Shell 49.9

Unipec-Shell 49.9

Chinaoil-Shell 49.9

Unipec-Shell 49.9

Chinaoil-Shell 49.9

Unipec-Shell 49.9

Chinaoil-Shell 49.9

Mercuria-Unipec* 50

Lukoil-Vitol 49.85

Chinaoil-Shell 49.9 *

December partial

PRICES ($/BBL) CURRENT PREV SESSION

DME OMAN 49.95 51.73

DME OMAN DIFF TO DUBAI 0.08 0.07

CASH DUBAI 49.90 51.60

EFS: Front-month Brent’s premium to Dubai crude hit the widest in five months after backwardation in the European marker’s forward curve strengthened, according to trade sources and Reuters data on Friday.

Brent-Dubai’s Exchange for Swaps (EFS) was at $1.54 a barrel, the highest since March. The October spread widened about 50 cents a barrel this week, and its gains are expected to curb Asia’s demand for Brent-linked grades from the Atlantic Basin and push consumption to Middle East and Russian crudes priced off Dubai. ARBITRAGE: IOC bought 1.9 million barrels of U.S. crude in its second import tender seeking oil from the Americas, making it the first Indian refiner to purchase Eagle Ford shale oil, a senior official said. IOC bought 950,000 barrels of light sweet Eagle Ford shale oil and 950,000 barrels of heavy sour Mars crude for end-October delivery from trading firm Trafigura, the refiner’s finance director, A.K. Sharma, told Reuters. T

ENDER COUNTRY/COMPANY GRADE VOL CLOSE (VALID) LOADING DATE

**INDIA/BORL b:sour Aug 16 (Aug 18) Oct

QATAR/QP s:DFC/LSC NA August 16 October (August 17)

TENDERS

AWARD COUNTRY/COMPANY GRADE VOL COUNTERPARTY/PRI LOADING DATE CE

*RUSSIA/ONGC s:Sokol 700KB Korea Dubai ard Oct 11-17 +$3.7

*INDIA/IOC b:Mars 950KB Trafigura end-Oct arr b:EF45 950KB Trafigura end-Oct arr

REFINERY

Shell said on Thursday it aimed to restart Europe’s largest oil refinery by the end of the month following a July 30 shutdown, sending gasoline and diesel prices lower. NEWS OPEC forecast higher demand for its crude in 2018 on Thursday due to rising global consumption, and pointed to signs of a stronger oil market that suggest an OPEC-led production cut is getting rid of price-sapping excess supply. Saudi Arabia’s Energy Minister Khalid al-Falih said on Thursday that talks with his Iraqi counterpart stressed the need to strengthen commitment to a OPEC-led agreement to reduce crude output.

Four U.S. Senate Republicans from oil refining states urged the Trump administration on Thursday to not block oil shipments from Venezuela as part of U.S. sanctions against the country, saying it could raise costs for U.S. fuel consumers.
Source: Reuters (Reporting by Florence Tan; Editing by Sunil Nair)

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