Crude/Condensate: Jun 21-25: Some Aug Murban cargoes seen unplaced
In the OTC market for Abu Dhabi grades, a few sellers apparently continued to offer August-loading Murban. An end-user in Japan such as Fuji Oil has not issued an additional buy tender, contrary to previous forecasts that the company would float an additional tender this week. Under the circumstances, some sellers, expecting demand from these buyers, were holding uncommitted cargoes. In addition to Murban, other grades such as Oman and Abu Dhabi Upper Zakum were also seen uncommitted.
The CFR Southeast Asia market of Azerbaijan's Azeri for August arrival rose to premiums of $4.00-4.10 to Dated Brent. FOB prices advanced, following a recovery in energy demand in US and Europe, while inter-month backwardation spreads for the benchmark Dated Brent were wide, boosting procurement costs for Asia.
In the tender related news, PTT Public Co. in Thailand closed its August to September arrival sweet crude buy tender for the country's petrochemical IRPC on Jun 22, but the company did not award the tender. Offer prices for all cargoes were apparently higher than PTT's price ideas. In the previous buy tender for July to August arrival sweet crude, PTT secured Algeria's Saharan Blend as reported.