Middle East

Saudi Arabia's state-owned Saudi Aramco early next month will inform its term buyers of the new OSPs for October-loading and several market sources predicted Saudi Arabia would cut the OSP for its flagship Arab Light for Asia by $1.50 from the previous month. Inter-month spreads for the benchmark Dubai papers were glued to contango. Crude demand has not recovered in Asia. Under the circumstances, Saudi Aramco could reduce the OSP for AL sharply from the previous month," said a trader in Singapore. The September-loading AL OSP formula was earlier settled at a premium of 90cts to Dubai/Oman average.

Africa/Europe/Russia/America

Spot differentials for October-loading Far East ESPO were assessed at premiums of 50-60cts to Dubai quotes. Russian producer Gazprom sold 740,000 bbl of ESPO for Oct 4-14 loading via its sell tender closed on Aug 25. The price was said to be at a premium of slightly above 50cts to Dubai quotes. The buyer was apparently China National Chemical Corp (ChemChina).

Asia Pacific

The market for October-loading Malaysian Labuan collapsed to discounts in the range of $0.95-1.05 to DTD Brent and flipped into negative territory. Demand for Malaysian grades shrank fast amid sluggish gasoil refining margins in Asia. Malaysia's state-owned Petronas sold one 300,000bbl cargo of Labuan for 7-13 loading. Buyer details remained sketchy, but the cargo was heard traded at a discount of around $1.00 to DTD Brent.