Crude/Condensate: Jun 29-Jul 3: Vitol buys five Middle Eastern cargoes
In the trade of August-loading Middle Eastern grades, Vitol purchased a total of five cargoes in the market on Jun 30. Vitol secured one cargo of Abu Dhabi Murban and two cargoes each of Upper Zakum and Qatari Al Shaheen. The seller for Murban was India's Reliance Industries Limited (RIL). The deal changed hands after 20 lots of physical Dubai (one lot 25,000bbl) were sold at fixed prices and Murban was delivered to Vitol, instead of Oman. Vitol paid the quality gap between light crude Murban and medium grade Oman to Reliance when it secured the Murban through alternative settlements. Meanwhile, Lukoil and PetroChina sold the Upper Zakum to Vitol, and China's Hengli Petrochemical sold two cargoes of Al Shaheen. For each of the deals, 20 lots of physical Oman were sold to Vitol and Upper Zakum and Al Sheheen cargoes were delivered, instead of Dubai.
In the trade of August-loading Sudanese grades, Senning, an equity holder in Dar Blend and an affiliated company of China National Petroleum Corp (CNPC), sold two cargoes of 600,000 bbl via its sell tender closed on Jul 1. At least one cargo was sold to a Chinese end-user. Prices was said to be at premiums to DTD Brent but the details were sketchy.
Spot differentials for August-loading Australian Vincent gained. Demand recovered after a lull that was caused by the COVID-19 expansion. A combined two cargoes of Vincent were allocated for August loading. Out of two cargoes, Australia's producer Woodside Energy sold at least one 550,000bbl cargo for first-half month loading. Buyer details remained sketchy at this stage, the price was believed to be at a premium of at least $6 in front over DTD Brent. The strength came as demand for Australian heavy grades gained momentum as blending stocks into low sulfur bunker fuel, at a time when ocean transportations picked up gradually. As reported, Vincent would have a higher flash point from July loading onward, reigniting demand as blending stocks into low sulfur bunker fuel.