Crude/Condensate: Mar 4-8: Indonesia, Malaysia ink crude swap deal

2019/03/11 07:00

Middle East


For Abu Dhabi crudes, the February-loading OSP for Murban was unveiled at a premium of $1.78 over Dubai quotes, down 9cts from the previous month. Meanwhile, the April-loading OSP formula for Saudi Arabian Arab Extra Light (AEL) was set at a premium of $1.45 over the Dubai/Oman average, up 50cts on month. The OSP gap between Murban and AEL narrowed to 33cts in favor of Murban. In condensate-related news, Qatar Petroleum for the Sale of Petroleum Products Co (QPSPP) renewed its April-June term contract price on Deodorized Field Condensate (D.F.C.) at discounts of the low- to mid-$2 level to Dubai quotes.




Among US crudes, British BP sold Eagle Ford to an end-user in China. The cargo was originally sold by BP to an end-user in South Korea, but a quality issue propped up after the arrival to South Korea. The cargo was rejected by the South Korean end-user, forcing BP to resell the barrels to a third party. Meanwhile, Taiwan’s CPC Corp purchased a combined 4.00 mil bbl of WTI Midlands in its sweet crude buy tender for April loading. US Occidental Petroleum and US ExxonMobil sold 2.00 mil bbl each to CPC.


Asia Pacific


State-owned oil firms in Indonesia and Malaysia clinched a crude grade swap deal. Indonesia’s Pertamina will receive Malaysian light crude Kimanis from Petronas. Instead, Pertamina will provide Petronas with Indonesian medium grade Ketapang. Pertamina lacks secondary unit capacity at its home refineries while Petronas has more capacity to reprocess fuel oil than Pertamina, making the swap into a win-win deal for both parties.


 :   Katsuhiko Karino 
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