Bloomberg News

Abu Dhabi Pledges Supply to Japan on Loan: Persian Gulf Oil

February 18, 2013

Abu Dhabi pledged continued crude supply to Japan after getting a $3 billion loan from a state- linked bank in the Asian country.

Refineries in Libya and Iran are running below capacity as the Persian Gulf country faces sanctions on its oil industry and the North African state’s fuel-processing plants continue to have technical faults, the International Energy Agency said.

The following is a weekly summary of Persian Gulf crude and product market news and forthcoming events:

Crude

Abu Dhabi National Oil Co. agreed to take a $3 billion loan from Japan Bank for International Cooperation, a government official said. JBIC, as the lender is known, is extending credit to Abu Dhabi’s state-owned oil company, known as Adnoc, for a five-year period, Japanese Trade Minister Toshimitsu Motegi said at a press conference in the emirate Feb. 10. The loan is the third between Adnoc and JBIC, following similar agreements in 2007 and 2010.

Qatar International Petroleum Marketing Co., or Tasweeq, sold seven cargoes of 600,000 barrels each of Al-Shaheen crude, according to two traders who asked not to be identified because the information is confidential. The 4.2 million barrels for loading in April sold at premiums of $1.20 to $1.40 a barrel to Dubai oil, they said Feb. 15.

In regional trading, the Oman and Dubai grades both rose for a fourth week, gaining 21 cents a barrel, or less than 1 percent, through Feb. 15. Oman crude futures rose to $112.70 a barrel in the week ended Feb. 15. Dubai crude climbed to $112.58 in the same period, data compiled by Bloomberg show.

Products

Kuwait Petroleum Corp. sold 80,000 metric tons of straight- run fuel oil to PetroChina Co., two people with knowledge of the sale said. The cargo was set to be loaded Feb. 14 to Feb. 15.

Jordan Petroleum Refinery Co. is seeking to buy 500,000 metric tons of gasoil, 120,000 tons of unleaded gasoline and 210,000 tons of fuel oil. The company is accepting offers through March 5 and didn’t specify delivery dates, according to a statement on its website.

Refineries

Iran’s and Libya’s refineries are operating below capacity, according to IEA estimates. Fuel-processing plants in Iran are probably running at 85 percent of their capacity, with overall crude runs of 1.6 million barrels a day in November, the IEA said in its monthly oil market report on Feb. 13.

The country, under tightening U.S. and EU sanctions, is struggling to process more crude domestically, the IEA said. Iran, which hasn’t released data on its downstream operations since May 2012, raised refining capacity to 2 million barrels a day last year, the IEA said.

Libya is likely to import 3 million tons of gasoline in 2013 from Lukoil and other suppliers to meet local demand as domestic refineries face “technical difficulties,” the IEA said.

Iran will “soon” start operating a residual fluid catalytic cracking unit that can refine more than 90,000 barrels of crude a day, state-run Press TV said Feb. 11, citing Deputy Oil Minister Alireza Zeighami. The unit at the Shazand Imam Khomeini Refinery in central Iran is twice the size of the world’s biggest comparable facility, which can process as much as 45,000 barrels a day, Zeighami was quoted as saying.

To contact the reporter on this story: Anthony DiPaola in Dubai at adipaola@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net


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