Middle East Crude

Indonesia's state-owned Pertamina bought 500,000bbl to 1.0 million barrels of Abu Dhabi's Murban crude for January arrival in Indonesia in a tender that closed on Oct 19. While details such as prices were unclear, PetroChina sold the cargo. It was unusual for Pertamina to purchase Middle Eastern crude through tenders. With VLCC freight rates surging, CFR-based prices for light crudes from outside the region, including US and West African grades, for arrival in Indonesia have been rising sharply. Therefore, Pertamina was believed to have opted to buy Middle Eastern crude from a closer region, which relatively kept transportation costs low.

African/European/Russian/American Crude

In trade for African crude, Britain's Perenco sold November-loading Chad's Doba to European Glencore. The price was said to have been below discounts of $23 to Dated Brent. Amid a surge in freight rates, Chinese buyers deemed delivered prices too high and refrained from purchasing Doba. Under such circumstances, Perenco was believed to have lowered its offer and made concessions to Glencore.

Asia Pacific Crude

In trade for Australian condensate, negotiations for December-loading NWSC have begun. Woodside is offering one December-loading cargo and, as of last week, was indicating premiums in the low $20s to Dated Brent on a delivered Asia basis. Delivered levels have risen amid strong freight rates. On an FOB basis, levels including a $9.00 premium to Dated Brent have been heard. As previously reported, two NWSC cargoes were scheduled for December loading. Market participants have suggested that Woodside may also market the December 4-8 cargo allocated to Chevron.