Middle East Crude

Spot differentials for March-loading Al Shaheen strengthened. Reflecting the wide Brent/Dubai EFS spreads, Dubai linked Middle Eastern grades were felt as undervalued, which lifted the market for Al Shaheen. French Total Energies this week sold March-loading Al Shaheen at a premium of $2.10 to Dubai quotes in private negotiations. The buyer was said to be an end-user in Indi. Elsewhere, Al Shaheen was heard offered at a premium of $2.20 to Dubai quotes, though the identity of the seller was unknown at this stage.

African/European/Russian/American Crude

Prices for Sokol from Sakhalin loading March surged. As prices for arbitrage cargoes such as US WTI rose sharply in recent days, demand for Sokol, which was perceived to be relatively cheaper compared to US crude, was expected to increase especially from South Korea. This sent the market higher. India's ONGC sold 700,000 bbls of Sokol loading Mar 19 via a tender closed on Tuesday. The buyer was said to be European trader Vitol and the awarded price was heard at a premium of $5.60-5.70 to Dubai quotes. As reported, ONGC conducted a sell tender in mid-December for second-half February loading and sold 700,000 bbls at a premium of about $4.20 to Dubai quotes.

Asia Pacific Crude

Prices for Australian Pyrenees loading February surged. The market was pushed higher by stronger crack spreads of low sulfur fuel oil in Asia and tight supply of Australian heavy grades including Pyrenees. Australia's Santos sold a Pyrenees loading March on Thursday. Although the buyer was not heard, the deal was done at a premium of around $13 to the Dated Brent. The February-loading market was at the same level as March-loading. Santos also had a spot Van Gogh for loading in March and would likely move to sell the cargo as early as next week. The cargo was originally for February-loading but delayed to March-loading as reported.