--Middle East

Abu Dhabi National Oil Co (ADNOC) was proceeding sales of Das, Upper Zakum and Umm Lulu that were loaded inside the Persian Gulf, or the west side of the Strait of Hormuz, on top of Murban that was supplied at the Fujairah port. ADNOC offered crudes on a CFR based price using smaller tankers than VLCCs such as Suezmax vessels. ADNOC loaded Das and Upper Zakum at the Das Island and the Jirku Island on VLCCs, which passed through the Strait of Hormuz. After that, crude grades were transferred via ship to ship operations on the offshore of Fujairah and so on. Several end-users in Asia including Indian firms secured those cargoes as part of long-term contracts, while ADNOC would sell these grades on a spot basis as mentioned later. A company in South Asia said several cargoes among ADNOC's VLCCs appeared to have been approval for a passage in the Strait of Hormuz. Through these VLCCs, Das and Upper Zakum are seen transported to outside the Strait of Hormuz.

-- Africa/Europe/Russia/America

In trade for Brazilian crude, trade for August-arrival in China gained momentum. China International United Petroleum & Chemicals Co (UNIPEC) moved on buying Brazilian grades, such as Tupi, Búzios, and Lapa. Unipec purchased a total of 12mil-14mil barrels of August-arrival Brazilian grades (equivalent to six to seven VLCCs). The prices were apparently at premiums in the $3.00s to Dated Brent. "UNIPEC is likely to continue purchasing August-arrival cargoes amid attractive values. While most of the crude it purchased would be directed to domestic end-users in China, some appears to be for resale purposes," said a Singapore-based trader. As previously reported, Unipec had purchased a total of 12mil barrels of July-arrival Brazilian grades (equivalent to six VLCCs) at premiums in the $6.00s to high $7.00s to Dated Brent. The company had resold some of these July-arrival cargoes to Asian end-users.

--Asia Pacific

In other trade for Australian condensate, it emerged that Shell has sold a July 15-20 loading Gorgon cargo to a South Korean end-user on a spot basis. The deal was concluded in mid-May, with the price heard at a premium of $2-3 to Dated Brent on an FOB basis.