Omikron threatens Asian oil demand just as pricing supports Atlantic oil

Air View Idemitsu Kosan Co. Oil Factory from Tokyo, Japan East Ichihara November 12, 2021 This photo shows in Kyodo. Photo taken on November 12, 2021. Mandatory Credit Kyodo / by REUTERS

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London / Singapore, December 7, 2011 Relative changes in crude oil levels Recent opportunities have created a good opportunity for exporters from the vast Atlantic Ocean oil exporters to Asia, the biggest beneficiary in months. -19 Fear of great desire.

Omicron Coronavirus differences have hampered oil consumption in Asia, as US and West African sellers have relied on a changing market structure to provide an easy-to-go-to-east route from the Middle East oil rival.

International Standards Brent and West Texas were surprised by last week’s decision to boost production by US Strategic Petroleum (SPR) and the Petroleum Exporting Countries and their partners. Read more

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Brent crude imports to Dubai fell to $ 2.56 a barrel last week, the lowest since March, making Atlantic Basin crude oil exports more attractive to Asian buyers, traders and analysts say.

Brent’s premium to Dubai has fallen sharply since March, making Atlantic Basin standards more competitive than in Asia.

Nigeria and Angola oil sales to India from USW Midland refineries in East Asia.

Angolan Girassol crude oil and Nigerian Coua Ibo are offered on board for $ 1.60 and $ 1.40 a barrel for free – still cheap compared to the Middle East simplicity.

The West African crude oil seller said: “We have seen a window of mediation open. In recent weeks, the demand for Indian and some Eastern markets has been encouraging, so that huge offers have been missed.”

“But trading has calmed down over the past few days. There is still a lot of uncertainty about how new locks will affect demand in the new year.”

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Traders say Chinese buyers cannot be easily tempted by bargains at affordable prices;

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Offers for parts such as the Democratic Republic of Congo have dropped by $ 2 a barrel to China by March ICT Brent, which is $ 3 a barrel higher than last month, according to an East Asian buyer.

“We’ve been shopping for most of the year. The deals are very high and the market does not guarantee that some of the Atlantic basin will be expensive when the epidemic returns,” said the second governor.

Although the release of the US SPR initially weakened Atlantic Basin’s core values ​​such as Mars and allowed some cargo to be sold to Asia, the window is now “slightly open,” said a Singapore-based trader.

After WTI’s offer to Brent, Mars’ s deficit rose for more than two months, prompting U.S. domestic demand.

“It was cheap, but not now, and it doesn’t trade much, so I’m not sure if it was loaded,” said another trader.

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Following the expansion of WTI-Brent, the US Mars’s gap widened by more than 2 meters, raising US domestic demand.

Reporting by Noah Browning in Florence Tan and London; Additional report by Arat Somasekar in Bengalru; Edited by Jan Harvey

Our standards are published in The Thomson Reuters Trust Principles.


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