Oct 3 (Reuters) - Asia-Pacific crude market was quiet on Thursday with most November-loading volumes sold, but sentiment cooled amid weak refining margins and more supply.
A tender to sell seven cargoes of ESPO crude for end-October to early-December loading closed on Wednesday, but details had still not emerged. Premiums for Russia's ESPO blend were expected by some traders to fall, in line with Abu Dhabi's rival Murban crude.
"ESPO should align with Murban, and with EFS narrowing, it may suffer a bit," said a Singapore-based trader.
Japanese end-users usually buy close to half of ESPO cargoes, but were so far heard to have purchased just one or two for November-loading.
The gap between Brent and Dubai swaps widened slightly on Thursday to around $4.60 per barrel. The spread has held steady below $5 per barrel in the past two weeks since touching a two-year high of $7 per barrel earlier in September.
Regional grades have been supported recently by the wide Brent-Dubai spread, limiting arbitrage cargoes from the Atlantic Basin.
Vietnam's PV Oil sold a cargo of Bunga Kekwa at a steady premium.
In the regional condensate market, BP may have sold a partial cargo of North West Shelf Condensate for November-loading to Malaysia's Petronas, but the deal could not be confirmed.
"The
* TENDERS
- India's Petral is seeking sweet crude for December arrival in a tender that closes Oct. 3 with one-day validity. Petral last bought Qua Iboe and Bonny Light from Nigeria for November loading.
- Vietnam's PV Oil sold 400,000 barrels of Bunga Kekwa at a premium of around $6.5 per barrel to Dated Brent. The cargo was likely sold to a trading house. PV Oil previously sold Bunga Kekwa for Sept. 24-30 loading at $6-$6.5 per barrel above Dated Brent.
* MARKET NEWS
- Russia's No.2 oil producer Lukoil LKOH.MM plans to reach commercial levels of oil production at Iraq's huge West Qurna-2 oilfield in the first quarter of 2014 and expects smooth exports from the deposit, a company official said.
- Gazprom GAZP.MM has announced that it is on track to begin oil production this year at the Prirazlomnoye Arctic oil project that has ignited protests from environmental groups over the dangers of possible oil spills.
- The U.S. shale oil boom has meant a bumper pay day for U.S. refiners, but its light, sweet composition is leading to a shortage of heavy material, distorting product prices around the globe, refiners and consultants say.
For crude prices, oil product cracks and refining margins, please click on the RICs below.
Brent
Dubai
Brent/Dubai EFS
PRODUCT CRACKS
Fuel oil crack
Gasoil crack
Naphtha crack
Complex refining margins
(Reporting by Jacob Gronholt-Pedersen and Florence Tan; editing by James Jukwey)
((jacob.pedersen@thomsonreuters.com)(+65 6417 4529)(Reuters Messaging: jacob.pedersen.thomsonreuters.com@reuters.net))
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