SINGAPORE: Light sweet grades and condensate in the Asia-Pacific crude market weakened on Friday, dragged down by soft margins for light distillate products.
Oil Search has sold two of its Kutubu cargoes loading in August to BP at $1-$1.50 a barrel above dated Brent, a trader said. The deal, which could not be independently verified, would point to a drop in the light sweet crude's value.
Woodside was heard to have lowered its offer for August-loading North West Shelf (NWS) condensate to a premium of $1-$2 a barrel to dated Brent on lacklustre demand although bids were at parity to discounts, traders said.
BHP has sold its NWS condensate cargo to Shell, and Chevron has yet to market its cross-month cargo, they said.
Russian grades remained depressed. ONGC issued a tender to sell an August-loading Sokol cargo. The tender is likely to see lower bids as Sokol sellers have reduced their offers to about $4 a barrel to Dubai quotes, down from premiums of more than $5 in the previous month.
Rosneft has requested for a second round of bids for its ESPO cargoes in a tender after receiving lower-than-expected bids in the first round, traders said.
Brent's premium to Dubai swaps, or Brent-Dubai Exchange of Futures for Swaps (EFS), dropped 17 cents to $3.40 a barrel for August.
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