Middle East Crude

　Saudi Aramco did not mostly change the OSPs for March-loading from the previous month for its long-term contractors in Asia. Aramco lowered the OSP for March-loading Arab Extra Light (AEL) and the OSP for March-loading Arab Medium (AM) by 5cts and 20ctc respectively from the previous month. Nevertheless, the OSPs for March-loading Arab Light (AL), Arab Super Light (ASL) and Arab Heavy (AH) remained at the same level as those for February-loading. Several long-term contractors mentioned that Saudi's March-loading OSPs were settled at lower levels than initially expected. Inter-month spreads for Dubai crude oil in January had considerably enlarged from December. Thus, most contractors had predicted that Aramco would raise the OSP for AL by about 50cts from the previous month.

African/European/Russian/American Crude

　The CFR Northeast Asia market of Kazakhstan's CPC Blend fell sharply. No CPC Blend was flowed into Asia last month. As a result, CPC Blend had been consumed mainly in Europe, and supply to Europe increased, which sent prices lower. But end-users in Asia such as Korea resumed purchases of CPC Blend, encouraged by a fall in prices. South Korea's SK Energy purchased 2.0 mil bbls of CPC Blend for May arrival. China's International United Petroleum & Chemicals Co (UNIPEC) also procured 2.0 mil bbl of CPC Blend for May arrival. Those end-users loaded CPC Blend on VLCC and would bring the avails through the Cape of Good Hope. The prices for these deals were unknown but May arrival CPC Blend was heard offered at a premium of $1.00 to Dated Brent on CFR Northeast Asia. As a result, the traded levels were believed to be slightly lower than the offer.

Asia Pacific Crude

In trade for April-loading Vietnamese grades, PetroVietnam Oil Corp (PV OIL) issued a Chim Sao sell tender. Through the tender that would be closed on Feb 15 at 9:00 Vietnam time with offers valid until Feb 20 at 18:00, PV OIL was trying to sell 300,000 barrels for Apr 20-24 loading. Meanwhile, several end-users such as Thailand's PTT Public Co (PTT) and Bin Son Refining & Petrochemical (BSR) were expected to participate in the tender. With firm refinery margins for middle distillates, buying interest in April-loading might be stronger than that in March-loading, according to sources. In fact, crack spread for gasoil in April against Dubai swaps was $22.87 in Singapore on Feb 7, which was higher than that in March as of early January by around $2.