Asia's crude prices rise as demand remains high

Asia's crude prices rise as demand remains high

SINGAPORE (Reuter): Asia's crude market remains supported by power generation demand, with Minas, Duri and Bach Ho trades done at strong premiums, traders said yesterday.

There were rumors of a Japanese refiner buying August Minas at ICP +70 cents per barrel, and Duri at ICP +$1.28, the highest premiums seen for the crudes in the last few months, but they possibly included date guarantees.

August Bach Ho was also heard done at OSP +65 to a major, while the first September cargo was rumored traded to China at OSP +52/53.

August trading for light Asian crudes was thin.

But expectations of tighter supplies has yet to filter onto spot levels, with rumors of an August Tapis deal done at a discount under APPI, but not confirmed.

No other details of the deal were available, although most traders thought that a discount level was reflective of the current market fundamentals.

An early August cargo of North West Shelf condensate was sold by a producer, with the buyer heard to be a western trader take the barrels to the U.S. Gulf for petrochemical use.

A U.S. major bought an August 11-20 VLCC of West African crudes comprising Palanca, Cabinda and Nemba, for South Korea.

The Palanca price was around dated Brent +27, while Cabinda was priced around dated -$1.10, and Nemba around dated +3, all on a free-on-board basis.

August Oman is almost finished, after a U.S. major sold 150,000 barrels to a trader at MPM -27, and a European major heard sold a full cargo to China at Dubai +4.

Malaysia had committed its cargo into its own system leaving just one western trader holding a partial cargo of August Oman. A VLCC of Oman was also sold to a South Korean government body, delivery heard between August and October, for national stockpiling at a new storage facility.