SINGAPORE Aug 25 (Reuters) - Sweet crude strengthened in Asia on Thursday, with spot premiums for Russian ESPO and Vietnamese Ruby hitting multi-month highs on robust demand for distillates-rich grades.
Refiners are expected to ramp up middle distillates output as demand for heating oil peaks in the fourth quarter, while appetite for Vietnamese grades remained firm in refining and power generation use.
* TENDERS
- Surgutneftgaz sold ESPO Blend crude at the highest premiums since May, as refiners in northeast Asia and the United States secure supplies in an environment of profitable margins and rising demand.
Surgut sold three 730,000-barrel ESPO cargoes for loading in October at premiums of between $4.50 and $5 a barrel to Dubai quotes, three traders with knowledge of the deals said.
Shell, Japan's Mitsubishi and Itochu bought a cargo each.
- Vietnam's PV Oil sold an October-loading Ruby crude cargo via a tender at the highest premium in about four months on strong demand from Japan and expectations of lower Minas price markers.
The 250,000-barrel cargo for Oct. 20-26 loading was sold to a Japanese trading company at a premium of $5.20 a barrel to the Minas formula, a trader said.
- Taiwan's CPC Corp has bought a cargo of Bayu Undan condensate via tender for October delivery, a trade source said.
