Bloomberg News

Premiums for June Oil From Qatar, Russia Decline: Asia Crude

April 19, 2012

Crude loading from Qatar and Russia for June was sold at a lower premiums than May deliveries.

Qatar International Petroleum Marketing Co., known as Tasweeq, sold nine cargoes of Al-Shaheen crude for June totaling 5.4 million barrels at premiums ranging from 70 cents to $1.20 a barrel more than benchmark Dubai oil, said six traders who participate in the market. They declined to be identified because the information is confidential.

The buyers included international oil producers and an Indian refiner, three of the traders said. Al-Shaheen for May sold last month at premiums of as much as $2.50 a barrel, said two of the traders.

Sakhalin Energy Investment Co. sold Vityaz Blend for June and early July at a premium of about $5.30 a barrel to benchmark Dubai oil prices, said two traders who participate in the market, declining to be identified because they aren’t authorized to speak to the media.

The company sold three 750,000-barrel cargoes for June loading and one loading in late-June through early July. Buyers included Japan’s Mitsubishi Corp., one trader said. Vityaz cargoes offered in March for May loading sold at premiums of about $5.50 to $6, said one of the traders.

Petroliam Nasional Bhd., the Malaysian state oil company known as Petronas, sold a cargo of its Penara crude to Royal Dutch Shell Plc and a shipment of Labuan to Exxon Mobil Corp. at a premium of $8.50, said two traders who participate in the market, declining to be identified because the information is confidential.

Shell bought the Penara for June 1 to June 7 at a premium in the high-$4 range to dated Brent, while Exxon paid a premium of $8.50 a barrel for Labuan loading June 17 to June 23.

Vietnam and Indonesia

Vietnam’s PV Oil sold two June cargoes of Rang Dong, said two traders. A cargo for June 1 to June 7 sold at 50 cents above benchmark Minas oil, and a later shipment for June 22 to June 28 at a premium of $3 a barrel.

Indonesia’s PT Pertamina is seeking low-sulfur crude for delivery in July, according to a document obtained by Bloomberg News. The state-owned company has tendered to buy cargoes of either 600,000 barrels or 950,000 barrels to be delivered to its Cilacap refinery, according to the notice. Bids are due April 24.

Asian refiners will reduce daily imports of West African crude in May by 3.6 percent to the lowest in five months, a survey of five traders and an analysis of loading programs obtained by Bloomberg News showed.

A total of 59 cargoes are scheduled for export from Angola, Nigeria, Republic of Congo, Equatorial Guinea, Democratic Republic of Congo and Gabon. This equals 56.1 million barrels, or 1.81 million barrels a day, the lowest since December, compared with 1.88 million this month.

Mideast Output

Saudi Arabia, the largest oil producer in OPEC, pumped 9.853 million barrels a day in February, 0.2 percent less than the previous month, while reducing exports to 7.485 million barrels a day from 7.507 million in January, the data showed.

Iran, the second-largest producer in the Organization of Petroleum Exporting Countries, increased crude output by 0.9 percent to 3.752 million barrels a day in February, according to figures posted late yesterday on the Joint Organization Data Initiative’s website. Iran’s exports rose to 2.338 million barrels a day that month from 2.265 million in January.

Brunei Shell Petroleum Co. raised its official selling price for March for Seria Light crude to $133.98 a barrel and for Champion to $133.83 a barrel, according to a document sent to buyers obtained by Bloomberg News.

Profit Margins

Profits from turning a barrel of Dubai crude into fuel and products priced in Singapore averaged $4.59 during the last five days, according to data compiled by Bloomberg. That is up for the sixth day and is the highest margin for a five-day period since Feb. 21. The 30-day average is $2.75.

Dubai crude’s backwardation, when the price for delivery now is greater than that for later, rose 2 cents. Swaps for May were 74 cents a barrel more than July, according to data from PVM Oil Associates Ltd., a London-based broker.

The June Brent-Dubai exchange for swaps, which measures the European marker grade’s premium against the Middle East oil, rose 18 cents to $3.70 a barrel, according to data from PVM. The July EFS was up 10 cents at $3.94.

Oman for June delivery fell 21 cents to settle at $115.38 at 12:30 p.m. on the Dubai Mercantile Exchange.

No Dubai partials were sold today, according to a survey of traders who monitor the Platts pricing window.

To contact the reporter on this story: Ramsey Al-Rikabi in Singapore at ralrikabi@bloomberg.net

To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net


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