RTRS:Asia-Pacific Crude-Sentiment mixed on weak margins, Japan
SINGAPORE, March 22 (Reuters) - Sentiment in the
Asia-Pacific crude market was mixed on Thursday as weak refining
margins dragged down demand from refiners while values of
direct-burning grades remained supported by Japan.
Japan will continue to burn oil for power as only two
nuclear plants are in operation, but oil consumption at power
plants is likely to slow from the first quarter as the weather
becomes warmer.
Expectations of firm low-sulphur oil demand from Japan has
narrowed the price gap between heavy sweet grades Van Gogh, used
for burning, and Pyrenees, traders said. Pyrenees used to be
priced at $1-$1.50 a barrel higher than poorer quality Van Gogh.
The spotlight is on ESPO after spot premiums for April
cargoes collapsed to their lowest in more than a year on weak
demand. TNK-BP and Surgutneftgaz will award their May cargoes by
Friday.
* TRADES
- Pyrenees for May traded at steady to slightly lower
premiums than the previous month, reflecting weaker demand from
refiners as gasoil margins slipped.
BHP sold a cargo to a Thai buyer at about $7.50 a barrel to
dated Brent while Inpex sold its cargo to an unknown buyer,
likely Chinese, at a premium between $7.50 and $8.00 a barrel.
Apache earlier sold its cargo to a Chinese buyer at a
premium between $6.50 and $7 a barrel, lower than April trades
at premiums between $7.70 and $8 a barrel.
- Apache and Inpex each sold a Van Gogh cargo for May at
$7-$7.50 a barrel above dated Brent.
- April ESPO slipped further after Concord sold a cargo to
Unipec at about $3 a barrel above Dubai quotes.
* TENDERS
- Murphy Oil sold 600,000 barrels of Malaysian Kikeh crude
for loading in May at a lower premium than the previous month as
poor refining margins and seasonal refinery maintenance
depressed demand, traders said.
The cargo was sold to Shell at a premium of about $9 a
barrel to dated Brent, they said.
* MARKET NEWS
- Japan's imports of Iranian crude may drop 70 percent in
April from last year's average, the Nikkei business daily said
on Thursday, as tight EU sanctions on Tehran make it
increasingly difficult for buyers to get insurance for their
cargo.
- South Korea's imports of Iranian crude dropped 14 percent
in the first two months of this year from a year earlier,
joining the other major Asian importers of Iranian crude that
were reducing imports facing pressure from the United States.
- Japan will likely see mostly average to
warmer-than-average weather from April to June, the country's
official forecaster said.
CRUDE Price Prev Change %
change
MAY Oman diff to Dubai 2.57 2.41 0.16
MAY Brent 123.40 124.45 -1.05 -0.84%
MAY Dubai 119.68 120.85 -1.17 -0.97%
MAY DME Oman 122.25 123.26 -1.01 -0.82%
MAY Brent/Dubai EFS 3.72 3.60 0.12
DUB-EFS-1M
