RIM Market News >  Weekly Summary

Crude/Condensate: Sep 2-6: Saudi light/heavy gap widens on IMO regulation

2019/09/09 07:00

Middle East

 

Among Abu Dhabi crudes, the August-loading OSP for Murban was set at a premium of $3.19 over Dubai quotes, up 29cts from the previous month. Meanwhile, the October-loading OSP formula for Saudi Arabian Arab Extra Light (AEL) was settled at a premium of $2.90 over the Dubai/Oman average, up a whopping $1.20 on month. The OSP gap between Murban and AEL narrowed steeply to 29cts in favor of Murban. Meanwhile, the light/heavy gap for Saudi Arabian crudes widened from the previous month. The price trends reflected an outlook that demand would continue to shift to light crudes with less yields of high-sulfur fuel oil ahead of the tighter sulfur regulation in bunker fuel starting January 2020.

 

Africa/Europe/Russia/America

 

With regards to Sudanese crudes, Chinese equity holder Senning issued a sell tender for October-loading Dar Blend. In condensate-related news, a quality issue cropped up with US Eagle Ford that South Korea’s S-Oil purchased from European Vitol for July-August arrival and injected into its condensate splitter. The quality problem caused malfunction of the splitter, so S-Oil rejected to receive another cargo of Eagle Ford that was also secured from Vitol for early-October arrival.

 

Asia Pacific

 

For Australian crudes, the country’s Woodside issued a tender to sell Vincent for end-September loading. This was the second cargo of Vincent after output from new oil fields was added. The first cargo was taken by Japan’s Mitsui & Co for mid-August loading, and would be stored offshore Singapore as a blending stock for bunker fuel. Production in Vincent would be at 40,000-60,000 barrels per day (b/d) for the time being. Meanwhile, Australia’s Santos was expected to issue a sell tender on November-loading Pyrenees in the second week of September.

 

Tokyo : Crude/Condensate Team  Katsuhiko Karino  +81-3-3552-2411
Copyright©2019 RIM Intelligence Co. ALL RIGHTS RESERVED.
facebook      twitter

About SSL?