Tuesday, 18 July 2017

Middle East Crude-Robust demand from Shell supports Sept al-Shaheen

In Oil & Companies News 18/07/2017

The Middle East crude benchmarks stayed firm on Monday with Oman slightly stronger, while Shell’s robust demand for al-Shaheen underpinned the crude’s value in Qatar Petroleum’s tender. TENDERS: Qatar Petroleum sold five al-Shaheen cargoes at an average discount of 59 cents a barrel below Dubai quotes, against minus 93 cents last month. Shell bought at least three cargoes, while ExxonMobil purchased one, traders said. Taiwanese refiner CPC has bought its first cargo of Qatar’s deodorised field condensate to be delivered to its new splitter in September, trade sources said. Mitsui likely sold the cargo. The splitter is still undergoing trial runs and is able to process a mix of light crude and naphtha.
COUNTRY/COMPANY GRADE VOL CLOSE (VALID) LOADING DATE
**BAHRAIN/BAPCO s:Banoco AM July 18 (July Sept 21)
INDIA/BORL b:sour July 18 (July Sept 2-12 arr 20)
INDIA/MRPL b:sour 1000KB July 18 (July Sept 1-15 20)
INDIA/BPCL b:sour July 17 (July Aug-Sept 19)
QATAR/QP s:DFC/LSC NA July 18 (July September 19)
SRI LANKA/CEYPETCO b:Murban 700KB July 19 (72 Oct 16-20 arr hours)
SRI LANKA/CEYPETCO b:Murban 700KB July 19 (72 Sept 28-Oct 2 hours) arr
SRI LANKA/CEYPETCO b:Murban 700KB July 19 (72 Sept 10-14 arr hours)
TENDERS AWARD
COUNTRY/COMPANY GRADE VOL COUNTERPARTY/P LOADING DATE RICE
*QATAR/QP s:al-Shaheen 5*500-600KB Shell, Exxon Sept 1-2,13-14, Dubai -59 c/b 15-16,16-17, avg 21-22
*TAIWAN/CPC b:DFC 500KB Mitsui September delivery
*INDIA/IOC b:Basra Lt 2000KB H2 Sept
*INDIA/BPCL b:Oman 1000KB Dubai -70-80 Aug 16-Sept 5 c/b loading; Sept 26-Oct 15 arr
*INDIA/BPCL b:Mars + 2*500KB Shell Sept 26-Oct 15 Poseidon arr
*JAPAN/FUJI OIL b:Qatar Land 2*500KB P66 OSP +10-15 Sept c/b
TRADES: Petro-Diamond has sold a September-loading Upper Zakum at a Dubai-linked price to an unknown buyer. WINDOW: Shell remained the sole buyer of September Dubai partials as it picked up another six from Total, Lukoil and Unipec on Monday. Cash Dubai’s discount to swaps was at 56 cents, 1 cent wider than Friday.
Seller-Buyer Price
Total-Shell 47.70
Lukoil-Shell 47.70
Total-Shell 47.70
Total-Shell 47.70
Total-Shell 47.70
Unipec-Shell 47.65
PRICES ($/BBL) CURRENT PREV SESSION
DME OMAN 47.78 47.01
DME OMAN DIFF TO DUBAI -0.43 -0.55
CASH DUBAI 47.65 47.01
ARBITRAGE
India’s Bharat Petroleum Corp has made its first purchase of U.S. oil, buying high sulphur crudes Mars and Poseidon in a tender, its head of refineries R. Ramachandran said. BPCL has bought a cargo containing 500,000 barrels each of Mars and Poseidon for delivery from Sept. 26 to Oct. 10. A trade source said BPCL has bought the cargo from Shell.
Traders in the North Sea oil market have found a solution to the persistent overhang of unused barrels as Asia’s hunger for crude is prompting its suppliers to get creative and provide some unusual exports. Shell booked supertanker Olympic Leopard to load UK’s Forties and Russian Urals.
The oil major is also taking the first cargo of Brent to Asia in over a decade, traders and Reuters shipping data showed. NEWS Total declared force majeure on exports of Djeno crude oil in the Republic of Congo following a ship collision, traders said on Friday.
Shell’s Nigerian subsidiary declared force majeure on Bonny Light crude oil exports effective on Thursday, the company said in a statement on Friday, after the Nembe Creek Trunk Line was shut down, one of two pipelines transporting the grade. China’s oil refineries increased throughput in June to their second highest on record, with some independent plants raising output even as state oil majors prepare to take drastic steps to cut production during the peak summer season.


Source: Reuters (Reporting by Florence Tan; Editing by Amrutha Gayathri