Updated 19 October:
Activity on the Asia-Pacific crude market is picking up following the release of the Malaysian Kimanis December loading programme and various tenders from Indonesia, Vietnam and Myanmar.
Eight 600,000 barrel cargoes of Malaysian Kimanis crude are scheduled to load in December, unchanged from November supplies. ConocoPhillips, Petronas and Shell will each have two cargoes of the grade, while Petroleum Brunei and Murphy will each have a cargo for loading in December.
Vietnamese state-marketer PV Oil is offering January-June term supplies of Bach Ho crude in what is likely to be the country’s first term tender for the grade, traders said.
The oil firm is offering a minimum of 10,000 barrels per day (bpd) of Bach Ho crude with 33-35 degrees API, which is the grade’s heavier variant. The tender will close on Oct. 19 and have validity to Oct. 26.
Malaysian state-owned Petronas has also issued a tender to sell January Myanmar Yetagun condensate on behalf of stakeholders. The 350,000-barrel cargo is due to load around Jan. 13, according to the tender document seen by Reuters. The tender will close on Oct. 25. Toyota bought the November-loading cargo of the grade at around 20 cents per barrel below dated Brent via tender in August.
Indonesian state-controlled Pertamina is seeking three cargoes totalling 1.8 million barrels of condensate for December delivery via a tender that closes on Oct. 18. Pertamina most recently bought an end November-delivery cargo of Australian North West Shelf condensate from BP at around $2 per barrel to dated Brent on a delivered basis.
A Japanese trader has sold a cargo of December-loading Qatari Deodorized Field Condensate (DFC) to a Japanese buyer at a premium in the mid-$3.00 per barrel to Dubai quotes. The identity of the buyer remains unclear.
December DFC premiums have eased from November trades that were done around $4 per barrel premium to dated Brent even as Qatari state-marketer Tasweeq did not offer DFC in its monthly condensate sell tender.
An overhang of November-loading DFC cargoes that were still available early in the December trading cycle left buyers with ample supply options for December cargoes, North Asian condensate buyers said.
Trade for December-loading Russian ESPO Blend began following the release of sell tenders from Rosneft and Surgutneftegas. Rosneft is offering two 740,000-barrel cargoes of the grade, while Surgut is offering three cargoes of similar volumes.
Story from 10 October:
Trade for December-loading regional grades is set to pick up following the release of Kutubu Light’s December loading programme and fresh offers for Vietnamese crude on Monday.
Vietnamese state-marketer PV Oil is offering three 300,000-barrel Chim Sao crude cargoes for December loading, one cargo more than last month when it sold two November-loading cargoes at premiums of $2.50 and low-$3.00 a barrel to dated Brent.
PV Oil has only offered spot December-loading Ruby and Chim Sao crude so far, but also has two January-June term tenders for Sutu Den and Te Giac Trang crude outstanding. The term tenders are only expected to be awarded at the end of the month.
The Vietnamese oil firm made a counter offer of $2.50 a barrel above dated Brent after it closed the Sutu Den tender’s first round on Oct. 3, a source with direct knowledge of the matter said. Bids for the January-June Sutu Den supplies were likely to be between $1.00-1.50 a barrel to dated Brent, traders said.
In comparison, July-December Sutu Den term supplies were awarded to Unipec and a domestic refinery at around $1.60 per barrel above dated Brent in April. First round bids in the previous tender were about $1.30 per barrel to dated Brent, with PV Oil countering at $2.00 a barrel.
Two 650,000-barrel cargoes of Papua New Guinea Kutubu Light crude will load in December, according to two traders who received the grade’s December loading programme. The cargoes, which are scheduled to load Dec. 16-20 and Dec. 29-Jan. 2, will be marketed by Oil Search.
While the December loading programme is one cargo fewer than in November, spot availabilities are deemed steady from last month, when Oil Search sold two cargoes and ExxonMobil likely kept the third.
The oil major does not usually offer its Kutubu Light allocations as it opts to keep the supplies for its refining system. November-loading Kutubu Light cargoes traded at premiums around $1.10 and $1.40 per barrel to dated Brent.
Brent’s premium to Dubai swaps, or Brent-Dubai Exchange of Futures for Swaps (EFS), was at $2.80 per barrel, down 1 cent for December.