Middle East

Saudi Arabia's state-owned Saudi Aramco informed its term buyers on Wednesday that it settled the March-loading OSP formula for the country's flagship crude Arab Light (AL) at a premium of $2.90 to Dubai/Oman average. The OSP was reduced by 80cts from the previous month, compared with the previous expectations of a cut of around 50cts from the previous month. The spreading new coronavirus has taken a toll on the demand/supply fundamentals for the overall Middle Eastern crude grades and inter-month spreads for the benchmark Dubai papers narrowed in January. Several market players pointed out that Saudi Aramco reduced the OSP for AL larger than the previous forecasts, expecting demand to fall further.

Africa/Europe/Russia/America

Spot differentials for April-loading Sakhalin Sokol were narrowed to premiums of $4.25-4.35 to Dubai quotes. The new coronavirus outbreak showed no signs to stopping, so that demand from China decreased sharply and supply/demand fundamentals for overall crude oil loosened significantly, which drove Sokol values sharply lower. India's Oil and Natural Gas Corp (ONGC) sold one Sokol cargo for Apr 8-14 -loading sell tender closed on Thursday. The price was at a premium of $4.30 to Dubai quotes, and the buyer was China International United Petroleum & Chemicals Co (UNIPEC).

Asia Pacific

In the trade of forward April-loading Vietnamese grades, the country's PV Oil sold one 400,000bbl cargo of Dai Hung for 1-7 loading in its tender closed on Thursday. Buyer details remained sketchy at this stage, but the cargo was heard awarded at a premium in the low $6 level over DTD Brent. The price was down more than $1 from the previous Dai Hung tender for February loading. The weakness was mainly attributed to worsening middle distillate margins.