Asia-Pacific crude market down after gas oil cracks weaken

Petral, the trading unit of Indonesian state-run energy firm Pertamina, bought 600,000 barrels of Bruneian Seria Light crude for October delivery at a lower premium than the previous tender, traders said.

Petral bought the cargo from Chinese trading company Kangqi Petroleum at a premium below $7 a barrel to dated Brent on a cost-and-freight (C&F) basis, they said. The deal could not be confirmed.

Vietnam’s state oil marketer, PV Oil, has sold 400,000 barrels of Dai Hung crude at a lower premium than the previous tender, traders said.

The cargo for Oct. 10-20 loading was sold to a Western trader, probably Glencore, at around 50 cents a barrel above the Minas formula, they said, down from a premium of about $1 for a May-loading parcel.

Unlike other Vietnamese grades, Dai Hung’s premium did not rise because it is not commonly used, traders said.

PV Oil has sold 400,000 barrels of Bunga Orkid crude for Oct. 25-31 loading at a steady premium with the previous tender on firm demand for the grade in Asia.

The cargo was sold to a Western trader, probably Glencore, at a premium near $6 a barrel to dated Brent, traders said.

NEW CRUDE:

Italy’s Eni expects to start crude production at the deepwater Kitan oilfield in the Timor Sea early in the fourth quarter, lifting the Italian oil company’s output in the Asia-Pacific, a company spokesman said.

Kitan will be the latest addition of new sweet grades in Asia following two other fields in Vietnam, helping to meet growing demand in the region.