Middle East Crude

Spot differentials for May-loading Upper Zakum were quoted stable at premiums of $1.22-1.27 to Dubai quotes. The market for May-loading Upper Zakum was at discounts of about 10cts to May-loading Murban since supply/demand fundamentals for Middle East medium-heavy grades was slightly slack. Idemitsu Kosan sold May-loading Upper Zakum to United Petroleum & Chemicals Co (UNIPEC) at premiums of about $1.00 to Dubai quotes this week. One trader in Singapore reckoned that many term-contractors lowered the evaluations for May-loading Upper Zakum amid a sense that the OSP settled by ADNOC was overvalued. Thus, some term-contractors did not take back May-loading Upper Zakum to their own refineries but they moved on reselling cargoes.

African/European/Russian/American Crude

　 In the trade of April-loading African grades, end-users in China continued to purchased Angolan grades. It turned out that China's Yulong Petrochemical purchased one cargo each of Dalia and Pazflor for late April loading from British BP. The prices for these cargoes were heard at premiums of low $1.00s to Dated Brent when these deals changed hands. But following these deals, sentiment truned slightly weaker. "OPEC plus decided to raise production from April while Russian supply is recovering," said a trader in Singapore, so that the market eased slightly from the initial trading cycle.

Asia Pacific Crude

April-loading Vincent plunged due to slack supply/demand fundamentals. Tradable levels for April-loading Vincent were heard at premiums in the mid $5's to Dated Brent. With refinery margins for LSFO worsening, most end-users considerably reduced the evaluations for Australian heavy grades such as Vincent. Crack spread for fuel oil of 0.5% sulfur in April was $5.60 in Singapore on March 12, which was lower than that in March one month ago by about $3. Meanwhile, Mitsui Energy Trading Singapore (METS) had sold April-loading Vincent last week as reported. It later turned out that the price was at premiums in the $5's to Dated Brent.