30 July, 2018
Bahrain’s state-run Bahrain Petroleum Co (BAPCO) sold Banoco Arab Medium for September loading to a Chinese end-user via tender. The cargo changed hands at a discount of about 30cts to Saudi Arabia’s Arab Medium (AM) formula. The awarded price was hammered by intensifying competition against US medium crudes. Meanwhile, the Petroleum Authority of Thailand (PTT) procured Abu Dhabi UpperZakum for September-October arrival on behalf of the country’s petrochemical firm IRPC.
For US crudes, Taiwan’s Formosa Petrochemical Corp (FPCC) procured Mars for September arrival. The cargo fetched a premium of 60-70cts over Dubai quotes on a CFR basis, failing to put an end to a downward trend. Amid trade frictions between US and China, US crudes were kicked out of China and flew into other key countries in Asia, loosening up supply-demand fundamentals further. Meanwhile, Thailand’s PTT picked up Nigerian Akpo and Libyan Wafa condensate for September-October arrival on behalf of IRPC.
With regards to Vietnamese crudes, the country’s state-run PV Oil issued a term sell tender on Rang Dong for October 2018 and March 2019 loading. The tender offered 200,000bbl each month. Meanwhile, Thailand’s PTT secured Australian Gippsland, Vietnamese Hai Thach condensate and Malaysian Miri for September-October arrival on behalf of IRPC.