--Middle East

Saudi Arabia's state-owned Saudi Aramco continued to ship crudes at the Yanbu port or the supply channel on the Red Sea side. Saudi Arabia's Arab Light (AL) crude seemed to be the almost only Saudi crude shipped from the port and supply volumes were seen at around 3.0 million barrels per day (b/d) in early May. Saudi Aramco sold a total of 4.65 million barrels of spot cargoes from the Yanbu port and the Ain Sukhana port in Egypt, located in the Red Sea side, immediately after the Strait of Hormuz was closed in early March. But after that, Saudi Aramco refrained from selling spot cargoes via tender. The blockage of the Strait of Hormuz was prolonged, so that AL attracted heavy demand from long-term contractors in Asia such as Japan, South Korea, India and Thailand, leaving Saudi Arabia to have less spot room. In the loading facility at the Yanbu port as of Friday, Indonesian flagged Suezmax vessel "SUCCESS FORTUNE EX" with 158,764 mt was berthed and loading was proceeded.

-- Africa/Europe/Russia/America

In trade for Brazilian crude market, talks for July-arrival to China was becoming active. China International United Petroleum & Chemicals Co (UNIPEC) was said to have purchased a total of 12 mil barrels of Brazilian grades, including Tupi, for July arrival, equivalent to six VLCCs. Sellers were British Shell and Portugal's Galp. The prices seemed to have been at premiums in the $6s to high $7s to Dated Brent. Brazilian grades were seen as having strong attractive values compared to West African grades such as Angolan crude, in addition to ample spot supplies. Consequently, a Singapore-based trader pointed out, "UNIPEC is recently curbing its procurement of West African crude and prioritizing the purchase of Brazilian grades. Oversupply emerged for May-loading Angolan crude and Nigerian crude amid UNIPEC and other Chinese players' reluctance to procure West African grades."

--Asia Pacific

Vietnam's state-owned PV Oil skipped spot sales of June-loading Vietnamese grades. Following the previous month, PV Oil prioritized securing inventories for the domestic market. In Vietnam, concerns were growing that a shortage of crude oil would become serious following the prolonged closure of the Strait of Hormuz. Even if the Strait would be reopened from now on, PV Oil could refrain from spot sales of Vietnamese crudes over the next several months. "Spot sales by PV Oil could be limited to about two cargoes per month at the maximum," said an energy company in Northeast Asia, until the supply shortage in the domestic market would be resolved.