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Crude/Condensate: Apr 8-12: Abu Dhabi light gains, sensed as attractive

2019/04/15 07:00

Middle East

   The market for June-loading Abu Dhabi light grades strengthened across the grades. Demand notably increased, which was regarded as a bullish factor. In addition to widening Brent/Dubai EFS spreads, a rise in US WTI Midlands values made Dubai linked Abu Dhabi light grades attractive. Crack margins for gasoline in Asia were recovering, which also supported these light grades. A Japanese end-user seen as JXTG Nippon Oil & Energy Corp on Tuesday bought Murban. The price was said to be at a premium of around 30cts to OSP.



   Spot differentials for June-loading Sakhalin Sokol widened to $3.60-3.70 to Dubai quotes. Brent/Dubai EFS spreads continued to widen, enhancing evaluations for Dubai linked grades like Sokol. India’s Oil and Natural Gas Corp (ONGC) sold one cargo of Sokol for Jun 9-15 loading via its second sell tender closed on Wednesday. The buyer was believed to be a trader seen as Europe’s Glencore and the price was at a premium of $3.60-3.70 to Dubai quotes.


Asia Pacific

   Market sentiment surrounding condensates appeared to have returned to an upward trend. Indonesia’s state-owned Pertamina resumed purchases for condensates for the country’s TPPI. In addition, China’s Fuhaichuang Petroleum Chemical and Petrochemical purchased a total of four cargoes including Australia’ Wheatstone in its June arrival condensate buy tender, indicating that main end-users resumed procurements of condensates. The Chinese oil firm resumed condensate procurements this time due partly to an end of maintenance in May. In addition, the government granted the Chinese oil firm a new import quota for June. An end-user in Southeast Asia says, “Fuhaichung’s move to resume condensate procurements was regarded as a turning point to alter market sentiment that had been overwhelmingly bearish.”

Tokyo : Crude/Condensate Team  Hashimoto  +81-3-3552-2411
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