Crude/Condensate: Feb 4-8: ENOC buys March NWSC as Iran substitute

2019/02/11 07:00

Middle East


Among Abu Dhabi crudes, the January-loading OSP for Murban was announced at a premium of $1.87 over Dubai quotes, down 31cts from the previous month. Meanwhile, the March-loading OSP formula for Saudi Arabian Arab Extra Light (AEL) was settled at a premium of 95cts over the Dubai/Oman average, down 20cts on month. The OSP gap between Murban and AEL narrowed to 92cts in favor of Murban. In condensate-related news, Qatar Petroleum for the Sale of Petroleum Products Co (QPSPP) issued a sell tender on April-loading Low Sulfur Condensate (L.S.C.) for the first time in four months.




For US crudes, the CFR North East Asia market for WTI Midlands retreated to premiums in the mid $2 level over Dubai quotes. The market came under pressure from rising production in US coupled with a slump in global gasoline margins. On the contrary, the CFR North East Asia market for Mars advanced to premiums in the low $3 level over Dubai quotes. The strength came amid looming supply scarcity in heavy crudes driven by supply disruptions in Venezuela. As a result, medium grade Mars outperformed light grade WTI, creating a reverse phenomenon of quality differentials.


Asia Pacific


In condensate-related news, a combined four cargoes of Australian NSWC were allocated for April loading, flat from projected volumes for March loading. Meanwhile, Emirates National Oil Co (ENOC) in the United Arab Emirates (UAE) procured NSWC for March loading, following a similar move for February loading. UAE was not given a waiver by US to continue imports from Iran, so ENOC beefed up purchasing Australian condensates as substitute for Iranian South Pars.


 :   Katsuhiko Karino 
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