Middle East Crude

Saudi Aramco informed its term buyers in Asia of July-loading allocations. Saudi Aramco would provide term supplies for most end-users in line with contractual volumes. With crude oil prices staying high, Saudi Aramco intended to expand its sales shares. Some end-users apparently requested Saudi Aramco for incremental term supplies on the back of brisk demand. Meanwhile, Saudi reduced term supplies below contractual volumes for some end-users in China, reflecting sluggish demand in the country. The Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC, or OPEC plus, decided to increase production by 648,000 barrels per day (b/d) in July and August.

African/European/Russian/American Crude

Spot differentials for July-loading Nigerian grades strengthened, boosted by brisk demand for African crudes from Asia including Indonesia and India. Indonesia's state-run Pertamina floated an additional buy tender, showing healthy demand. Pertamina secured one cargo for Qua Iboe and two cargoes for Escravos in a tender closed on Jun 6 for July to August delivery sweet crudes. Market sources later perceived that the price for Qua Iboe was equivalent to a premium of nearly mid $7's to Date Brent on an FOB basis and that for Escravos was equivalent to a premium of around $8 to the quotes. For other July loading Nigerian crudes,

Asia Pacific Crude

In trade for Vietnamese crude loading August, state-owned PV Oil issued a sell tender closing Jun 15 for 300,000 bbls of Chim Sao loading Aug 13-17. Validity was until Jun 20. No Chim Sao was supplied for June to July loading due to maintenance at production facilities. In mid-March, PV Oil had sold Chim Sao loading May to Binh Son Refining and Petrochemical (BSR) at a premium in the low $8's to Dated Brent quotes as was previously reported.