Middle East

Spot differentials for December-loading Upper Zakum widened. Freight rates from the US to Asia which had surged in the previous week calmed down. US grades were sensed as attractive, which raised a sense that the Middle Eastern light grades were overvalued. In addition, price gap between light/heavy widened. Under the circumstances, demand shifted from light grades like Murban and Das to medium/heavy grades like Upper Zakum. In the market middle of this week, Japan's Fuji Oil secured one cargo of Upper Zakum. The price was said to be at a premium of above 40cts to OSP.

Africa/Europe/Russia/America

　Spot differentials for December-loading Sakhalin Sokol plunged. Freight costs for long haul tankers fell sharply, which weighed on short haul grades like Sokol. Japan's ITOCHU Corp, an equity holder of Sakhalin Oil and Gas Development Co (SODECO) sold one cargo early this week. The price was at a premium of $7.30-7.40 to Dubai quotes. India's Oil and Natural Gas Corp (ONGC) had sold one Sokol cargo to Europe's Trafigura at a premium of $9.20-9.30 to Dubai quotes via its sell tender closed late last week.

Asia Pacific

　Spot differentials for December-loading Australian heavy grades widened. Demand for Australian heavy grades remained strong as substitute for gasoil, as gasoil demand was healthy for fuel oil blending purposes ahead of tightening sulfur regulations for bunker oil by the International Maritime Organization (IMO) starting January 2020. Australia's BHP Billiton sold one cargo of December-loading Pyrenees via its sell tender. The price was said to be at a premium of around $15.00 to DTD Brent. Before the tender, Japan's INPEX had sold one cargo of December-loading Van Gogh to a trader at a premium of slightly above $13.00 to DTD Brent.