Kazakhstan CPC Blend oil heads to Asia as European demand eases, sources say
Softening demand from refiners in the Mediterranean for CPC Blend crude loading in the second-half of August widened discounts for the crude by about $1 a barrel from the previous month, a London-based trader said, creating opportunity for traders to cash in on the difference.
Prices for CPC crude for delivery to North Asia are about $3.50 to just below $4 a barrel above September Dubai quotes, the sources said. This is below the cost for Murban at roughly $4.70 a barrel to Dubai quotes on a cost and freight basis (C&F), they added.
Murban, which flows mostly to Asia, is supported by lower exports as Abu Dhabi National Oil Co is diverting supplies to its domestic refinery.
Unipec, the trading arm of Asia's largest refiner Sinopec (600028.SS), opens new tab, South Korea's top two refiners SK Energy and GS Energy, and India's Reliance Industries (RELI.NS), opens new tab have bought at least 1 million barrels of CPC Blend crude each, the sources said. The companies did not immediately respond to requests for comment.
A narrowing of Brent's premium to Middle East benchmark Dubai has also made Atlantic Basin grades more affordable for Asian buyers.
The Brent-Dubai Exchange of Futures for Swaps fell below $1.60 a barrel this week, on Thursday's close, levels not seen since May, LSEG data showed.
June Goh, a senior analyst at Sparta Commodities, said an uptick in freight rates for Very Large Crude Carriers on the Middle East to China route has also increased costs for Gulf crudes versus arbitrage supplies from Kazakhstan, the U.S. and Brazil.
"We anticipate further correction of the spot AG (Arabian Gulf) market is required to stave off competition of the arb crudes," she added.
Meanwhile, traders are also seeking opportunities to ship U.S. West Texas Intermediate crude to Asia after premiums for WTI at East Houston , also known as MEH, fell to their lowest in more than two weeks.
Offers for WTI crude deliveries to North Asia are about $5 a barrel above September Dubai quotes, slightly higher than Murban, traders said.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
16 minutes ago
- Reuters
Rupee weakens slightly, broad dollar softness cushions pressure
MUMBAI, July 21(Reuters) - The Indian rupee logged a modest decline on Monday, pressured by dollar bids from foreign and local private banks, though broad-based weakness in the greenback helped the local currency limit further losses. The rupee closed at 86.2925 against the U.S. dollar, down about 0.2% on the day, after touching a near one-month low of 86.35 earlier in the session. Asian currencies were flat-to-slightly higher, while the dollar index declined by nearly 0.2% to 98.2. The Indian rupee and the Indonesian rupiah are among the few regional currencies nursing losses on the year so far, even as their peers, such as the Taiwan dollar and the Korean won, have climbed over 11% and 6%, respectively. Muted portfolio flows, India's external investment deficit and likely FX reserve accumulation by the Reserve Bank of India are among the reasons cited by analysts for rupee's lacklustre performance this year. On the day, price action appeared to indicate modest outflows but dollar-buying pressure eased in the latter half of the session, helping the rupee trim its losses, a trader at a private bank said. India's benchmark equity indexes, the BSE Sensex (.BSESN), opens new tab and Nifty 50 (.NSEI), opens new tab, closed higher by about 0.5% each on the day, while the benchmark 10-year bond yield was last quoted slightly lower at 6.2986%. In the near term, focus will be on developments on two fronts: how U.S. economic data impact expectations of rate cuts and news surrounding U.S.-India trade negotiations ahead of the August 1 deadline for higher U.S. tariffs to take effect. "We maintain our view that slower growth, profit margin compression and export price reduction will contain the impact of tariffs, and that a slower economy will justify the Fed resuming rate cuts in September," ANZ said in a Monday note.
Reuters
16 minutes ago
- Reuters
Havells India misses quarterly estimates amid weak demand, rising competition
July 21 (Reuters) - Home appliances and electrical goods maker Havells India ( opens new tab reported first-quarter profit below analysts' estimates on Monday, due to subdued demand and heightened competition. Consolidated net profit came in at 3.48 billion rupees ($40.33 million) for the quarter ended June 30, down from 4.08 billion a year ago, and missing the LSEG consensus estimate of 4.06 billion rupees. Revenue from operations declined nearly 6% to 54.55 billion rupees, while total expenses dropped 5% to 50.55 billion rupees as input costs fell. For further earnings highlights, click here. India's wires and cables market is bracing for disruption next year, with UltraTech Cement ( opens new tab and Adani-backed Praneetha Ecocables set to enter the fray. To fend off the rising competition, Havells has stepped up investments in distribution and brand-building efforts, analysts have said. Meanwhile, a shorter summer dented demand for air conditioners sold under Havells' Lloyd brand, the company said. PEER COMPARISON * The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell ** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT APRIL TO JUNE STOCK PERFORMANCE -- All data from LSEG -- $1 = 86.2830 Indian rupees
Finextra
2 hours ago
- Finextra
MTN completes first transaction using JPMorgan's new Electronic Bill of Exchange offering
Mobile Technology Network South Africa (Pty) Ltd. (MTN SA), a major mobile telecommunications provider, has successfully completed the first transaction using J.P. Morgan's new Electronic Bill of Exchange (eBoE) offering – marking a pivotal step in the digitization of global trade finance. 0 The transaction facilitated the shipment of goods from Asia to the United Kingdom (UK). Today, large portions of the global trade finance industry still use paper and wet ink signatures for the selling or procuring of goods and/or services. As part of the industry's digitization shift, we are one of the first banks to transition eligible programs to Electronic Negotiable Instruments (eNIs) incorporating electronic signatures. The Electronic Trade Document Act (ETDA), which passed in the United Kingdom (UK) in 2023, is helping facilitate this trend by mandating that certain Negotiable Instruments - such as Bills of Exchange and Promissory Notes - in electronic form are to be treated in the same way as they would be in physical form. Dino Molefe, Chief Finance Officer at MTN SA said, 'MTN South Africa has been a leader in developing our working capital strategy as it pertains to our procurement of devices. J.P. Morgan and MTN SA have collaborated closely to unlock additional liquidity through innovative solutions, making us the ideal collaborator to pioneer this digital tool.' We have implemented Enigio's trace:original solution to facilitate the creation, management, and storage of eNIs, which satisfy the legal requirements of the ETDA. Using Enigio's blockchain infrastructure, an eBoE is securely signed and updated throughout its lifecycle, improving transparency and streamlining workflows, while enabling automatic data transfer and reducing risks and errors associated with traditional manual processes. The offering is initially available to companies transacting under English law. 'Our goal is to be at the forefront of the future of trade, as one of the first banks to approve the financing of a select set of Electronic Negotiable Instruments,' said Natasha Condon, Global Head of Trade Sales and Head of EMEA Trade at J.P. Morgan. 'By collaborating with Enigio, we are able to further the digitization of trade, ultimately helping corporations access working capital benefits in a much more streamlined way, how and when they need it.' 'Our trace:original solution has been designed to address the complexities of global trade while ensuring compliance with evolving regulations,' said Patrik Zekkar, CEO of Enigio. 'This transaction is a significant step forward in proving that electronic trade solutions can operate at scale - and that they are already doing so.'
