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RTRS:Asia-Pacific Crude-Brent strength may deter buyers
 
SINGAPORE, Sept 20 (Reuters) - Asia-Pacific crude values
remained firm, but the strength in benchmark dated Brent may
dampen buying interest and lead to narrower differentials later
this month, traders said on Tuesday.
Murphy Oil Corp is offering Malaysian Kikeh crude
via tender for loading in November. The tender for the
600,000-barrel cargo closes on Sept. 21.
"Dated Brent is very expensive, so I don't know whether
people are willing to pay a high price," a traders said. "Unless
you really need some sweet crude for processing, you wouldn't go
for this crude."

* CONDENSATES
Market sentiment was similar for Australian Northwest Shelf
Condensate (NWS), as end-users were likely to avoid the grade
and instead opt for cheaper Qatari supplies, priced off Dubai
crude. Still, once Middle East cargoes ran out because of
limited supplies, buyers with specific requirements would be
forced back into NWS, a trader said.
Five NWS cargoes are available for loading in November,
unchanged from October. Values for the grade were notionally
assessed at discounts of between $2-$2.30 a barrel, up from
discount of about $3.50 for October cargoes.
Only one Bayu Undan condensate spot cargo is available for
November from ConocoPhillips, said a trader who said values
would be about $1 lower than for NWS. The other two were sold on
a term basis.

* OTHER TENDERS
- Malaysian state oil firm Petronas sold Labuan crude at the
highest premium since the company switched to benchmark dated
Brent for its cargoes earlier this year, as refiners prepare to
cover requirements ahead of winter demand.
- Petronas sold the 600,000-barrel Labuan cargo for loading
Nov. 15-24 at a premium of about $8 a barrel to dated Brent or
slightly lower to trading company Mercuria, which would ship the
lot into China, a trader said, although this could not be
confirmed.

* EAST-WEST
- The Brent/Dubai Exchange of Futures for Swaps (EFS) for
November fell 30 cents to $4.70 a barrel at 0830 GMT, Reuters
data showed. The front-month EFS on June 15 touched $9.20, the
highest intraday value since the spread reached a record of
almost $12 in October 2004.



* MARKET NEWS
- Rates for crude tankers on key Asian freight routes are
expected to hover near this year's lows in the short term as
abundant vessel supplies cap gains from heightened trading
activity. For clean tankers, rates are seen higher on strong
distillates demand in Asia, shipbrokers said on Tuesday.

- The call on OPEC producers to supply to the market is
expected to remain steady at 30 million barrels per day (bpd)
until the end of the year, OPEC Secretary General Abdullah
al-Badri said on Tuesday.
- Asian prices of liquefied natural gas (LNG) will stay high
for at least seven years as Japan turns away from nuclear power
and emerging markets boost import capacity to fill unprecedented
demand, industry officials said on Tuesday.

* CRACK SPREADS
- Gas oil's October crack was a slight 3 cents lower at a
premium of $17.33, while the November premium was steady at
$17.50 a barrel to Dubai crude, down 1 cent.
- Fuel oil's October crack narrowed 42 cents to a discount
of $5.41 a barrel to Dubai crude, while the November discount
was 40 cents stronger at $5.54.
- Naphtha's October crack strengthened 20 cents to a
discount of $4.86 a barrel, while November discount was 7 cents
narrower at $4.33.

* OUTRIGHT PRICES
- October ICE Brent LCOc1 was at $109.76 a barrel at 0830
GMT, down $1.93 from Monday.

(Reporting by Alejandro Barbajosa; Editing by Alison Birrane)
Source