Tuesday, 24 March 2015 18:25
SINGAPORE: Medium sour grades in the Middle East crude market weakened on Tuesday with Banoco Arab Medium and DME Oman in discounts.
Bahrain’s BAPCO sold a second Banoco Arab Medium cargo for May loading to SK Energy at a discount of about 5 cents a barrel to OSP, traders said, down from premiums of 13-15 cents in prior deals for this grade.
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DME Oman’s discount to Dubai swaps also widened to about $ 1 as trade in Middle East crude slowed in Asia after Dubai strengthened against Brent by the close to $ 1 from the start of this month. Most refiners have completed their requirements for
May-loading cargoes while awaiting for Russian ESPO to trade.
Russia’s Surgutneftegaz will close a tender on Tuesday to sell three ESPO cargoes for loading on May 10-14, 14-18 and 19-23. Premiums for the key Russian export grade to Asia have fallen to $ 1.90-$ 2.50 a barrel for cargoes loading in early May after more cargoes were added to the April programme.
The world’s top exporter Saudi Arabia is pumping around 10 million barrels per day (bpd) — near an all-time high and some 350,000 bpd above the figure Saudi Arabia gave to OPEC for its February output, its oil minister has said.
Iraq, Venezuela, Russia and Kazakhstan all saw their oil partially replaced by Saudi crude in Asia, the United States and even Europe, with its lacklustre demand, as traders said the kingdom offered customers more oil, and more cheaply.
In a sign the crisis in Yemen could turn into a regional conflict, Saudi foreign minister said Arab countries could intervene in Yemen if peace efforts failed. Yemeni Masila crude export volume remained low at 1.4 million barrels in May.
DME OMAN
DME Oman for May settled at $ 53.54, up $ 1.11, at 0830 GMT. This puts DME Oman at $ 1 a barrel below Dubai swaps, down from a discount of 84 cents in the previous session.
MARKET NEWS
BP is planning maintenance at Britain’s Sullom Voe oil terminal in the second half of June, a company spokesman said, the outlet for Brent exports, but has no plan to shut the Forties oil pipeline at the same time.
Activity in China’s factory sector dipped to an 11-month low in March as new orders shrank, a private survey showed, signalling persistent weakness in the world’s second-largest economy that will likely fuel calls for more policy easing to support growth.
Angola’s Saturno oil output restarted over the weekend, one week after a power loss at an offshore facility forced it to shut down, traders said on Monday.
Copyright Reuters, 2015
