Crude/Condensate: Nov 9-13: Pyrenees firms on stronger low sulfur fuel margins
Spot differentials for January-loading Abu Dhabi Upper Zakum rose to premiums of 15-20cts to OSP, up 10cts from the previous day. The market for medium/heavy grades was lifted by potentially healthy demand especially from China. A trader in Singapore said, "End-uses in China could procure cargoes especially for medium/heavy grades actively. As the rival Oman market firms, Upper Zakum also would firm."
In the trade of January-loading Sakhalin Sokol, Idemitsu Showa Shell secured one cargo from Sakhalin Oil and Gas Development Co Ltd (SODECO) under the term contract following South Korean SK Energy as reported. Allocations for January-loading Sokol to SODECO increased from three to four cargoes. The rest of two cargoes would be sold in the spot market in the near future.
Spot differentials for Australia's Pyrenees for January-loading climbed to premiums of $8.65-8.75 to Dated Brent. Demand for Australia's heavy grades as a blending feedstock increased as low sulfur fuel oil margins in Asia strengthened. Australia's BHP Billiton sold 550,000bbl of Pyrenees for December 29 to January 2 loading on Thursday. The cargo was said to have changed hands at a premium of mid $8.00 to high $8.00 to Dated Brent.