Middle East Crude

Iraqi State Oil Marketing Organization (SOMO) offered June-loading BM at a discount of $20.00 to OSP. The company aimed to sell the crude at a hefty discount, in an attempt to sell it to traders and end-users. Several companies such as European Vitol loaded cargoes that they purchased on an FOB basis on VLCCs and moved to resell these cargoes after crossing the Strait of Hormuz via ship to ship operations (STS). SOMO offered June BH at a discount of $20 to OSP, like June-loading BM.

African/European/Russian/American Crude

In tender-related news, India's state-owned Indian Oil Corp (IOC) purchased Nigerian and Angolan grades via a July-August arrival tender. Additionally, IOC also procured Murban in Abu Dhabi in this tender. IOC bought 950,000 barrels of July-loading Nigeria's Usan from US ExxonMobil. Furthermore, IOC purchased 950,000 barrels of July-loading Angola's Kissanje and 950,000 barrels of Nemba, both from Briton's Shell. The awarded prices of these cargoes were heard at premiums in the $4's to Dated Brent on a CFR basis. Through the tender closed on Thursday with validity on the same day, IOC was seeking cargoes for July 7-16 and August 1-10 arrival for Vadinar refinery (405,000 b/d), July 6-15 and August 3-12 arrival for Paradip refinery (303,000 b/d), and July 5-14 and August 5-14 arrival for Chennai refinery (105,000 b/d).

Asia Pacific Crude

Spot differentials for July-loading Australian NWSC weakened to discounts of $5.00-$5.10 to Dated Brent. The decline reflected thin buying interest and a persistent sense of surplus. Some South Korean petrochemical companies have cut operating rates at their condensate splitters, making it difficult to find buyers. At 15:21 Tokyo time on May 29, Chevron offered one 650,000-barrel NWSC cargo for July 27-31 loading on the Rim Trading Board (RTB) at a discount of $5.00 to Dated Brent on an FOB basis. However, no players have shown interest in the offer by 15:30.