Middle East Crude

The outline of Japan's second release of crude oils from national reserves was settled. The Ministry of Energy, Trade and Industry (METI) decided on Friday afternoon that it would release 8.50 mil kl of oil, or worth of 20 days of Japanese demand from May 1. Like the first time of the release, Japan would release strategic oils from a total of 11 storage bases such as the Tomakomai National Reserves in Northern Japan and Kashima Crude yard owned by Kashima Oil in central Japan. The move was in response to a decline in Japan's imports as the blockage of the Strait of Hormuz continued.
Crude grades to be released in the second release would be mainly Middle Eastern medium/heavy grades such as the Neutral Zone's Khafji. But some light grades such as Murban and Arab Extra Light (AEL) were expected to be included due to strong demands from oil refiners, ENEOS, Idemitsu Kosan, Cosmo Oil and Taiyo Oil. Some Middle Eastern medium grades such as Khafji often contain large volumes of water as those grades were imported long time ago. As a result, it would take some time for refiners to be able to use grades for processing.

African/European/Russian/American Crude

In the August-arrival US crude trade, sellers reduced their offers slightly in pursuit of end-users. Offers for August-arrival WTI Midland for Northeast Asia were heard at premiums of around $20 to Dubai quotes. Nevertheless, end-users in Japan and Korea did not show interest in buying at this levels amid a sense that the market had room to move down.

Asia Pacific Crude

In trade for June-loading Papua New Guinea grades, Glencore has moved to resell a cargo of Kutubu. The cargo was the one for May 30-June 4 loading that Santos sold through a tender. The deal was concluded at a premium of around $15.00 to Dated Brent.
Furthermore, after selling the June-loading cargo, Santos sold a second Kutubu cargo on a spot basis. Although the buyer was not clear, the deal was heard concluded at a premium of below $10.00 to Dated Brent.