Middle East Crude

State-owned Indian Oil Corp (IOC) bought a total of 2.0 million barrels of Abu Dhabi Murban for April to May arrival in a tender closed on Tuesday. The price was unknown but IOC bought 1.0 million barrels from British BP for its Vadinar terminal. IOC also bought 1.0 million barrels of Murban from British Shell for the 105,000 barrels per day (b/d) Chennai refinery, owned by IOC's subsidiary Chennai Petroleum Corp Ltd (CPCL). In trade for March to April-loading Middle East medium-heavy grades, many cargoes of some grades such as Upper Zakum and Iraq's Basrah Medium (BM) were uncommitted in addition to Al-Shaheen. Meanwhile, some Indian refiners were considering spot purchases. Under such circumstances, Aramco Trading Co (ATC) was said to have sold some cargoes of the Neutral Zone's Khafji crude for March to April-loading.

African/European/Russian/American Crude

In trade for US grades for May arrival in Northeast Asia, with rising freight rates, sellers raised offers further. Offers for WTI Midland for May arrival in Northeast Asia were heard at premiums in the low $7's to Dubai quotes. On the demand side, one Japanese company showed interest in spot purchases. ENEOS was apparently engaged in negotiations with sellers to buy WTI Midland for May arrival. Meanwhile, Korean end-users such as GS Caltex and SK Energy considerably cut spot purchases of US grades for May arrival amid a sense that the prices were overvalued.

Asia Pacific Crude

In the trade of April-loading Australian condensates, INPEX sold one 650,000bbl cargo for Ichthys condensate for April 9-13 loading in a tender closed on Feb 20 by INPEX at a premium of the $2.00s level to Dated Brent. It turned out that the winner was US ExxonMobil. The major started operations of a new naphtha cracker at its petrochemical complex in Huizhou, Guandong province, China in April last year and has solid demand for regional light grades and condensates.