Indian explorer ONGC Videsh has sold a Sokol cargo loading in early January at a lower premium than the previous month, trade sources said on Thursday.
- A narrowing of Brent’s premium to Dubai quotes have squeezed spot premiums for Dubai-linked grades from Middle East and Russia
- The 700,000-barrel cargo to load on Jan. 4-10 was sold to SK Energy at a premium slightly above $4.90 a barrel to Dubai quotes, they said, down from the previous tender which went at $5.60-$5.70 a barrel
- Still, the latest tender beat market expectations as traders were expecting a sharper drop in Sokol’s premiums
- Robust demand from South Korea’s top refiner supported Sokol, the sources said
- Strong middle distillates margins and higher freight costs for similar quality oil from outside Asia may have also led SK Energy to bid for Sokol at a higher-than-expected level, they said.
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