Middle East Crude

Saudi Arabia's state-owned Saudi Aramco informed its term buyers in Asia of August-loading term allocations. Saudi Aramco was believed to have reduced August-loading term supplies for Asia by 5-20% from contractual volumes. But some of the term buyers apparently received full allocations. Market sources said the cuts this time mainly centered on Saudi Arabia's heavy grade Arab Heavy. Joint supply cuts by the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC would be smaller to 7.70 mil barrels from 9.7 mil bbl by the end of July, so that Saudi Aramco apparently made smaller cuts than July.

African/European/Russian/American Crude

Spot differentials for September-loading East Siberian ESPO weakened. Crack margins for gasoline plunged in China recently, eroding from Chinese independent refiners further. In addition, supplies increased as many competing West African grades were offered at low levels on a CFR China basis, which weighed on the ESPO values. Russian producer Surgutneftegaz sold two ESPO cargoes for Sep 8-15 and 11-18 loading through its second sell tender for September-loading ESPO closed on Thursday. Prices were at premiums of $1.30-1.50 to Dubai quotes.

Asia Pacific Crude

In the trade of September-loading Vietnamese grades, the country's state-owned PV Oil sold 300,000bbl of Cim Sao for 11-15 loading in its sell tender closed on Tuesday. The buyer was said to be Royal Dutch Shell. The cargo was awarded at a premium of slightly larger than $3.50 to Dated Brent.