Tapis crude sold at massive discount

Tapis crude sold at massive discount

SINGAPORE (Reuter): Sentiment on the prompt Asian light crude market was bearish on news that a shosha had sold its September Tapis cargo at a very low level, traders said yesterday.

A shosha heard sold its September Tapis cargo to a South Korean refiner at a hefty discount of 90 cents per barrel to the Tapis APPI.

The cargo was scheduled to load on Sept. 11 and Sept. 12, but was heard pushed back to Sept. 17 and Sept. 18.

The seller had been offering the cargo for the past few months, lowering its offer from Tapis APPI -30, to Tapis APPI -50.

The fate of another prompt Tapis cargo, loading end September, was uncertain, as talk that the seller had sold the cargo to a U.S. West Coast refiner could not be confirmed.

Some traders said the cargo was still on offer early yesterday.

But an October light Kutubu cargo was heard sold by a European major at Tapis APPI -40, higher than September deals of around APPI -60.

Traders said this reflected a slightly stronger October light crude market as increased demand was expected from North Asia.

A 150,000 barrel parcel of September heavy Minas was heard sold by a shosha at ICP +15 cents per barrel to China.

Traders said that this would leave just a small volume, around 50-100,000 barrels of Minas unplaced for September.

In the Middle East crude market, trading on the remaining October Abu Dhabi grades were active.

One million barrels of October Murban was heard sold by a European major to a U.S. major at ADNOC +16.

Murban, Lower Zakum and Umm Shaif trades were also heard done earlier to two other U.S. majors.

Despite the active market, traders said a few cargoes of Lower Zakum and Umm Shaif remain unsold, offered by a shosha and two European majors.

India's supplementary tender for October heard attracted three cargoes of Oman, from two shosha and a trader at MPM +9, +12, and +15.

Only one cargo of Dubai was offered, by a U.S. major at first half month quotes +40 cents.

In an initial October tender, Dubai cargoes were offered at first half month quotes +15, and +19, but were rejected.