--Middle East

　Spot differentials for December-loading Upper Zakum gained to premiums of $1.67-1.72 to Dubai quotes. The US announced sanctions on Russia's Rosneft and Lukoil on Wednesday, aiming to pressure Moscow into peace negotiations over Ukraine. The move sparked expectations of substitution demand for Russian crude, sharply lifting prices of Middle East medium-grade crude that had been trending lower amid a previously slack supply/demand balance. The impact also spread to Middle East light grades. Thus, "light grades are seeing a sudden surge in tradable levels since early morning" said a Singapore-based trader.

-- Africa/Europe/Russia/America

　In the trade of North Sea crudes, demand/supply fundamentals for medium/heavy grades loosened. An overhang caused by fading demand for West African grades such as Angolan grades was spreading to the overall Atlantic region. British BP sold November-loading Norway's Johan Sverdrup at a discount of $2.00 to Dated Brent. The buyer was French TotalEnergies. Meanwhile, demand/supply for light grades also showed signs of weakening. Demand for alternative US light grades, long-hauled cargoes bound for Asia, lost momentum, due to a spike in freight rates, which dented demand/supply in the Atlantic region. ENI sold Forties for mid-November loading at a discount of 15cts to Dated Brent. The buyer was said to be US ExxonMobil.

--Asia Pacific

　TPPI's Tuban refinery owned by Indonesia's Pertamina already resumed operation after a fire broke out on Oct 16. But the refinery's operating rate stood at 73.2% as of Oct 20, down from 90.0% as of Oct 14. Pertamina so far did not move to resell cargoes that were already purchased and market players were watching about TPPI's future buying.