Spot prices for Indonesian heavy crude strengthen

Spot prices for Indonesian heavy crude strengthen

SINGAPORE (Reuters): Spot prices of heavy Indonesian crude were supported as the remaining July barrels fetched firm premiums, traders said yesterday.

An equity producer of heavy sweet Widuri was heard to have sold 100,00 to 200,000 barrels to a Japanese trader for July, at 30 cents per barrel over the ICP.

Traders said that most of the July supplies of regional crudes have already been committed, and the market was now waiting for indications of August availabilities.

The consortium producing the Vietnam Dai Hung field has issued a tender to sell 450,000 barrels of the medium sweet crude for lifting Aug. 10-31.

The tender closes July 9, and is valid for a day.

In its last tender, the consortium awarded 700,000 barrels of Dai Hung for lifting in July to one of its own members, Malaysia's Petronas, at a discount of 33 cents to Minas APPI quotations.

But trading in the August Middle East crude market was active, although price levels of most grades, except for Qatar Marine, saw little improvement despite expectations of further reductions in term liftings.

Qatar Marine prices saw a slight improvement, as reduction in Qatar's July term volumes was only on Qatar Marine and not Qatar Land, traders said.

Two cargoes of Qatar Marine were heard traded, by a French major to a Japanese refiner at Dubai -29 cents, and by a Japanese trader at QGPC -25 cents.

Neither trade could be confirmed.

Last week, Qatar Marine discounts to QGPC were closer to 40/50 cents.

Traders said a European major sold a cargo of August Murban at a discount of 10 cents to the ADNOC price to a Japanese trader, slightly lower than the ADNOC -8.5 cents traded earlier for August cargoes.

A U.S. major was also heard to have bought an August cargo of Umm Shaif at a 20-cent discount to ADNOC, while a European major was heard to have sold Lower Zakum to Kenya at ADNOC -12 cents, traders said.

An August Dubai cargo was heard sold by a western trader to a European major at a 43 cents discount, traders said.

In addition, the first September trade was heard done, a French major selling a September Dubai cargo to a European major at 25 cents under August quotations, traders said.