July 5, 2019 / 9:52 AM / 3 months ago

Middle East Crude-Oman premium jumps; Exxon offers Upper Zakum at discount

SINGAPORE (Reuters) - Middle East crude benchmarks rose on Friday with DME Oman’s premium posting a more significant jump than cash Dubai.

DME Oman’s premium to swaps rose 31 cents to $1.67 a barrel while cash Dubai’s premium was at $1.09, up 11 cents.

Exxon Mobil offered September-loading Upper Zakum cargo at 15 cents a barrel below its official selling price (OSP) while Shell placed a bid at a discount of 30 cents a barrel.

GS Caltex maintained its offer for a September-loading Murban cargo at 25 cents a barrel below its OSP.

SAUDI: Saudi Aramco has set the August official selling price (OSP) for Arab Light crude for sale to Asia at $2.45 a barrel above Oman-Dubai quotes, 25 cents lower than the previous month.

The price cut was smaller than the 30-50 cents a barrel forecast by refiners in a Reuters survey.

The producer also cut the August OSPs for Arab Extra Light crude and Arab Medium crude by 55 cents and 20 cents, respectively.

It raised the August OSP for Arab Heavy by 10 cents, against expectations of a price cut of at least 15 cents, likely due to strong demand for heavy oil in the absence of Iranian supplies.

ASIA PACIFIC: Indonesia has set the official Indonesia Crude Price (ICP) for Minas crude oil at $61.84 a barrel for June, down $7.21 from the previous month, a document from the Ministry of Energy & Mineral Resources showed.

The June Minas alpha, or price difference to dated Brent, was set at minus $2.26 per barrel, down 19 cents from a month ago, the document showed.

Australia’s North West Shelf (NWS) condensate exports will drop to three cargoes in Sept due to maintenance activities in third quarter, trade sources said.

Seller Grade Volume Loading date

Shell NWS cond 650KB Sept 5-9

MIMI NWS cond 650KB Sept 18-22

Woodside NWS cond 650KB Sept 28-Oct 2

ARBITRAGE: India’s MRPL has made its first purchase of U.S.-produced Thunder Horse crude oil via a tender for mid-October delivery, its managing director M. Venkatesh said.

“The price offered was very competitive,” Venkatesh said. The state-run refiner placed an order to buy 1 million barrels of the sour oil, he said.

Separately the refiner has also bought 1 million barrels of Angolan Dalia crude from Total at a premium of $4-$4.30 a barrel to dated Brent for delivery in early September.

WINDOW

Seller-Buyer Price

Unipec-Shell (Oman) 62.20

Unipec-Shell 61.60

Unipec-Shell 61.64

Unipec-Shell 61.60

Reliance-Shell 61.60

PRICES ($/BBL)

CURRENT PREV SESSION

DME OMAN 62.18 62.09

DME OMAN DIFF TO DUBAI 1.67 1.36

CASH DUBAI 61.60 61.71

REFINERY

Poland’s PKN Orlen is expected to face a full-scale EU antitrust investigation into its planned takeover of rival Lotos and may even face a veto due to their combined market share, people familiar with the matter said.

MOVES

Repsol Trading Singapore, the commercial arm of Spanish energy company Repsol, has hired senior Chinese oil trader Alan Wang Wei to join its team, three industry sources said on Friday.

Pacific Commerce, the trading arm of Chinese independent refiner Dongming Petrochemical in Singapore, hired Leonard Leong from Italian oil and gas company Eni as crude oil trader and he will start in September.

NEWS

British Royal Marines seized a giant Iranian oil tanker in Gibraltar on Thursday for trying to take oil to Syria in violation of EU sanctions, a dramatic step that drew Tehran’s fury and could escalate its confrontation with the West.

Iraq and Oman signed a memorandum of understanding to cooperate in the oil and gas sector, including the possibility of building a shared refinery in Oman for processing imported Iraqi crude, the Iraqi oil ministry said in a statement on Thursday.

China aims to launch a bonded low-sulfur bunker fuel oil contract that will allow foreign investors to participate in trading by the end of 2019, the Shanghai Futures Exchange (ShFE) said.

High-sulfur fuel oil premiums in Asia surged to a record on Thursday, one of the first signs of the impact of a shift in global ship fuel rules set to occur in 2020.

Reporting by Florence Tan; Editing by Rashmi Aich

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