Middle East

　Saudi Aramco on Apr 4 informed its term buyers in Asia that it raised the May-loading OSP formula for the country's flagship Arab Light (AL) by 40cts from the previous month to a premium of $1.80 to Dubai/Oman average. The backwardation in the benchmark Dubai papers widened. Saudi Aramco appeared to have judged that demand has recovered albeit gradually. In addition, the Brent/Dubai EFS spreads were still hovered at wide levels of high $2.00 to $3.00, which would make Dubai linked Middle Eastern grades undervalued, relative to arbitrage cargoes. This was also cited as a factor for the hike in the AL OSP this time.

Africa/Europe/Russia/America

　The China Shandong market of Brazilian Tupi for June arrival rose. The market was lifted by expectations of improving demand from China. Tupi for June arrival heard changed hands for an independent refiner in China. The price was said to be at a premium of 80-90cts to ICE Brent on a DES Shandong basis. A player in Northeast Asia said, "demand for prompt May arrival remains weak, but the June arrival market appears to have hit a bottom partly as maintenance at China independent refiners would be over."

Asia Pacific

　In the trade of June-loading Australian condensates, a provisional loading schedule for NWSC was released. A total of two cargoes (650,000 bbl each) would be supplied, one cargo less than the previous month. While there was no information of maintenance so far, the details of short supply were unknown. One June 4-8 loading cargo was allocated to Royal Dutch Shell, while a June 14-18 loading cargo was allocated to Japan's Mitsui & Co. "The impact of a cyclone approaching Western Australia was uncertain, so that the loading schedule for the last cargo for NWSC apparently was yet to be finalized. An end month-loading cargo could be added later," a Southeast Asian player pointed out.