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Asia crude steady, South Korea buys West African

SINGAPORE: Asian crudes were steady in thin trade on Monday with the market eyeing arbitrage volumes heading east, likely to weaken Asian prices, traders said.

They said a South Korean refiner had bought a very large crude carrier (VLCC) of Cabinda and Nkossa around Dated Brent -65 cents and Dated Brent +20 cents, respectively.

Another South Korean refiner was heard to have bought a VLCC of early May lifting Mandji and Djeno, but details of the deal were unclear.

Traders said Chinese buyers were also eyeing West African crudes, made attractive with the narrower Brent/Dubai spread of around $1.60 currently, compared with $2.30 early last week.

But activity in regional crudes was limited, keeping indications of spot premiums vague, traders said.

They said May Minas would likely slip to below ICP +1.00 per barrel after an April deal was said done last week at ICP +$1.10.

Thailand's Bangchak refinery was planning to issue a tender this week seeking May Asian light crudes, but did not intend to issue any Middle East crude purchase tender for May.

Taiwan had also issued tenders to buy May West African and Middle East crudes, closing later this week.

Its Middle East crude tender, seeking Oman, Basrah Light or Masila, was usually closely watched, for ideas on Oman demand and price direction.

But spot trade in Middle East crudes was quiet, as buyers waited for a firm outcome of OPEC's Vienna meeting on Monday.

Traders said a European major had sold 600,000 barrels of May Murban to Kenya, at a cost-and-freight price that equated to ADNOC +5/+7 cents on a free-on-board basis. The price was close to earlier deals done.

May cargoes of Iraqi Basrah Light also continued to drift into Asian amid lacklustre U.S. demand for the crude.

A third May cargo was sold last week to a Japanese refiner.

Traders said in April, just one cargo headed to Asia.-Reuters