Asia crude prices down, sluggish trade on China
Asia crude prices down, sluggish trade on China
SINGAPORE (Dow Jones): Asian and Persian Gulf crude values are lower late Thursday from Wednesday, with spot trade sluggish on the absence of Japan-based and China-based buyers.
In Japan and China, Wednesday through Friday are public holidays, and the buyers won't be back in their offices until next week.
But even then, traders said they aren't certain that the pace of trade will quicken. Some traders said the buyers in Japan have already secured most of their June requirements, and others have said buyers in China have been telling sellers they won't be buying many barrels in June.
In addition, officials with Taiwan's state-owned Chinese Petroleum Corp. have said CPC probably won't issue a Persian Gulf crude buy tender for June loading dates.
Traders said if the forecast of lackluster buying for the rest of the June barrels is fulfilled, then spot prices for the Oman, Murban and other Persian Gulf crude grades will slip to the steep discounts seen in May trade.
With the Japan-based and China-based buyers out of the market, most of the talk Wednesday and Thursday has been focused on the June-July Dubai spread, now at $1-$1.20 a barrel. But traders said that with the June wet barrels already fully placed, much of that talk was simply notional.
Traders said the market is also eying a June buy tender out of Indonesia and a June 1999-July 2000 Nile Blend crude sell tender out of Malaysia.
Later Thursday, Taiwan's CPC will close its June Duri crude buy tender. Late Wednesday, in the award of its June West African sweet crude buy tender, CPC arranged to take four very large crude carriers of West African crudes in June.
Late in Asia, the Tapis paper market is down 40 cents from Wednesday at $26.15-$26.25 a barrel for May and $25.60-$25.70 a barrel
The June Brent-Dubai spread is 15 cents wider at $1.05-$1.15 a barrel. The July spread is 20 cents wider at $1.60-$1.70 a barrel.
June Dubai barrels are down 48 cents at $23.81-$23.86 a barrel. July Dubai barrels are down 68 cents at $22.71-$22.76 a barrel.