Middle East Crude

In the Saudi Arabian crude oil market, state-owned Saudi Aramco appeared to be increasing its sales through private negotiations. While sales via tenders continued, for Ship to Ship (STS) transfers off Oman and Fujairah, and CFR-based sales, Saudi Aramco appeared to be shifting its focus towards sales through private negotiations. Specifically, since mid-October, Saudi Aramco was believed to have sold multiple cargoes of AL and AM on an STS and CFR basis to its term contract holders in India, China, Japan, and Korea.

African/European/Russian/American Crude

As with January-arrival cargoes, most offers of February-arrival WTI Midland were for Aframax-sized cargoes, with few VLCC-sized cargoes available. The shortage of VLCCs for loading in the US Gulf was attributed to strong demand for shipping Middle Eastern crude to Asia, as well as a sharp increase in ship-to-ship (STS) transfers by Saudi Aramco and Abu Dhabi National Oil Company (ADNOC). These activities tied up many VLCCs in the Middle East, leaving vessel availability for US Gulf loadings tight.

Asia Pacific Crude

For Australian Vincent, one spot cargo planned to be supplied for loading in the middle of December. Australia's Woodside was set to sell the cargo. Meanwhile, supply for December-loading Pyrenees could be skipped. The Floating Production Storage and Offloading (FPSO) of Pyrenees entered a dry dock this month. Maintenance was expected to last until December. The last Pyrenees supply was for early October loading, sold by Woodside.