Crude/Condensate: Jun 18-22: Thailand IRPC seeks Aug-Sep arrivals via tender

25 June, 2018

Middle East
For Abu Dhabi crudes, the market for August-loading Upper Zakum tumbled to discounts of 15-20cts to OSP. Wiling buyers were limited amid perceptions the latest OSP for May loading was overvalued in comparison with competing Dubai and Oman. August-loading Banoco Arab Medium also received less favorable evaluations on high price concerns for benchmark Saudi Arabian Arab Medium (AM). Trade levels for Banoco Arab Medium sank to a discount of about 50cts to AM.


In the trade of US crudes, the focus is whether or not China’s aggressive buying will continue in the upcoming months. The Chinese government on Jun 16 unveiled its plan to impose a 25% tariff on crude oil imports from US as retaliatory measures in a trade war against US. It remains to be seen when the tariff will come into effect, but China purchases 20 mil barrels of US crudes per month, the biggest among demand countries in Asia. Any reduction in China’s imports by the tariff burden could give a significant impact on supply-demand fundamentals for US crude oil.


Asia Pacific 
The Petroleum Authority of Thailand (PTT) issued a light sweet crude/condensate buy tender for August-September arrival on behalf of the country’s petrochemical firm IRPC. China’s former Dragon Aromatics was also seen seeking condensate cargoes for September arrival, eyeing a restart of the petrochemical plant that has been suspended after an explosion in April 2015.


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Malaysian Petrochemicals Association (MPA)
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Tel: +603-2171 3456 / +603-2171 3521
Fax: 03-2171-3535

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