Tuesday, 31 March 2015 17:37
SINGAPORE: Most May loading cargoes were committed in the Asia-Pacific crude market, although differentials could come under pressure from inflows of cheaper West African grades.
Both Indonesia’s Pertamina and Taiwan’s CPC bought African grades in their import tender for sweet grades.
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Brent’s narrowing premium to Dubai crude makes African oil more competitive relative to Middle East crude. Brent-Dubai Exchange of Futures for Swaps (EFS), or Brent’s premium to Dubai swaps, narrowed 29 cents to $ 1.22 a barrel on Tuesday.
Pertamina bought 950,000 barrels of Nigerian Escravos, 600,000 barrels of Congolese Coco and 950,000 barrels of Algerian Saharan Blend in its tender for June arrival, traders said.
The Escravos cargo was purchased from Chevron at about $ 4.70 a barrel above dated Brent on a delivered basis, reflecting increasing pressure on Nigerian grades, traders said. Details of the other deals were not available.
Taiwan’s CPC may have sold a cargo of Angolan Cabinda from Chevron in its tender for May loading, although that could not be verified.
REFINERY
Japan’s second-biggest oil refiner by capacity, TonenGeneral Sekiyu KK, said on Tuesday it would cut crude distillation unit (CDU) capacity at its Kawasaki plant by 4 percent to help meet government requirements.
MARKET NEWS
India has bought the first oil for its strategic petroleum reserve (SPR), trade sources said on Monday, marking the start of a round of purchases by the world’s fourth-biggest oil consumer to build up emergency stockpiles.
China has managed to export a large shipment of crude oil from Yemen over the weekend, ship-tracking data showed on Monday, despite mounting chaos in the country after the launch of Saudi-led air strikes last week.
Copyright Reuters, 2015
