Middle East

Some market players expected the July-loading OSP for Upper Zakum to be reduced against Murban from the previous month. In the early trading cycle for July-loading, Upper Zakum changed hands at premiums of around 30cts to OSP, but the market advanced toward the last trading cycle, with deals done at premiums of $1.40-1.70 to OSP. A trader in Singapore said, "The OSP for Upper Zakum may be settled higher than Murban since demand/supply fundamentals for medium grades are tighter than light grades. But the market for light grades also strengthened, which would narrow the OSP gap with Murban." The June-loading OSP formula for Upper Zakum was earlier set at a premium of 50cts to Murban, or a discount of $3.95 to Dubai quotes.

Africa/Europe/Russia/America

Spot differentials for July-loading East Siberian ESPO widened to premiums of $3.10-3.20 to Dubai quotes. Supplies for competing West African grades like Angolan grades were lower than normal months, so that demand for ESPO from Chinese end-users as a substitute for Angolan grades was stable. Russian Gazprom sold a July-loading ESPO cargo via its sell tender closed on May 26. The price was at a premium of $3.10-3.20 to Dubai quotes and the buyer was said to be a Chinese end-user.

Asia Pacific

Thailand's PTT Public Co apparently purchased a Malaysian crude grade in its light sweet crude and condensate buy tender for July-August arrival on behalf of the country's petrochemical firm IRPC. In the tender, PTT procured a combined two cargoes for Jul 20-Aug 10 arrival. The other cargo was said to be Libyan Wafa condensate.