Asian crudes firmed on tight supplies

Asian crudes firmed on tight supplies

SINGAPORE (Reuter): Tighter spot supplies coupled with peak seasonal demand supported heavy Asian crude prices yesterday, traders said.

July spot trading for Minas crude has not started, but sellers were offering at ICP +25 cents per barrel, with bids likely to come from ICP +10/15. July Duri crude was also discussed at firmer levels of ICP +60/65, compared to the last July trade done at ICP +48 at the end of last week.

But turnarounds in Indonesia and Australia have reduced demand for lighter Asian grades, keeping the market in the doldrums.

A partial cargo of end July North West Shelf condensate was on offer, with a cargo each of Kutubu, Tapis and possibly Dulang also available for the second half of July.

A western trader was heard holding early July arrival barrels of Australian Harriet and Barrow Island crudes, which may be offered onto the spot market as regular buyers Indonesia had no interest.

These ample supplies of light crudes kept Australian refiners out of the West African crude market, but buying interest from South Korea and Singapore for July loading West African cargoes was still seen.

A 900,000 barrel cargo of end June Nkossa from Equatorial Guinea was confirmed sold by a European major to a Singapore refiner.

Activity on the Middle East crude market remained very thin, and is expected to pick up only next week when August trading starts.

One western trader was holding the last full Oman cargo for July, while three other sellers had partial cargoes, with bids heard at MPM -40.