RTRS:Asia Crude Outlook-Firm values may stabilise on robust demand
SINGAPORE, Sept 19 (Reuters) - Asian crude prices are set to
remain firm this week, including some Middle East grades at near
record levels, as refiners accelerate purchases in a trading
month that has seen buyers pick up cargoes faster than usual.
Refiners across the continent are stocking up for peak
winter heating demand, while the supply of arbitrage cargoes
from the Atlantic Basin remains limited because of curtailed
Libyan and North Sea production. Brent's premium over Dubai
crude has remained above $5 a barrel despite expectations of
resuming Libyan exports.
"It should be supported because the Brent-Dubai spread has
widened enough for refiners to look for more cargoes," a trader
said. "Last week it was only the second week of September, just
the beginning of the three-week trading window, and things moved
very fast."
MIDDLE EAST NEAR RECORDS
* In the Middle East market, traders expect premiums of some
heavy sour grades will continue near record levels, after Oman
crude traded above $2 a barrel last week and Qatari al-Shaheen
reached all-time peaks in Tasweeq's tender.
* Wider-than-average refining margins have made it
profitable for refiners to keep processing rates at high levels,
raising crude demand at complex refineries that can process
heavy sour crude into light fuels.
* Buyers including Thailand's PTT and oil majors are likely
to ramp up purchases of heay sour grades, while the lighter
Middle East crude is likely to be supported by strong values for
grades like Russian Sokol.
ASIA-PACIFIC SEEKS SUPPLIES
* In the Asia-Pacific markets, regional refiners are also
chasing additional supplies.
* Petral, the trading unit of Indonesian state-run energy
firm Pertamina, is seeking light sweet crude for delivery in
November in a second tender after skipping purchases in a
previous one last week, a trading source said on Monday.
* The company is seeking a 600,000-barrel cargo for arrival
in November. The tender closes on Sept. 20 and remains valid
until Sept. 21, the source said.
* Malaysia's state oil firm Petronas raised the Tapis crude
price alpha factor for September lifting to $6.25 per barrel, up
by 35 cents from $5.90 for August, an industry source said on
Monday.
CONDENSATES MAY CLIMB
* In the condensates market, traders will be looking at a
tender by Qatar International Petroleum Marketing Co, or
Tasweeq, to sell deodorised field condensate (DFC) and
low-sulphur condensate (LSC) to be awarded by the end of the
week.
* Last month, Tasweeq sold fewer than usual October-loading
DFC cargoes because of abundant term sales before Tasweeq's
monthly tender and reduced otuput at Qatargas LNG trains in
October.
* Condensate values are likely to respond positively to a
tighter market and higher values for Asian crude.
* Attention will also be on a tender by Petronas to sell
Labuan which closes later on Monday.
(Reporting by Alejandro Barbajosa; Editing by Michael Urquhart)