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Crude prices in Asia up

but softer

premiums seen

SINGAPORE: Crude oil prices in Asia extended overnight gains in New York, albeit in thin trade.

Traders were disenchanted over the possibility of any imminent agreement between the United Nations and Iraq over the latter's one-time oil sale as talks dragged on.

Bullish sentiment in the crude market was capped by concerns as to whether product prices, mainly gas oil and gasoline, in the West were sustainable.

On NYMEX after hours trading system ACCESS, June climbed another 10 cents per barrel from New York, with bid/ask at $22.05/22.10. Its previous settlement was around $21.53.

Cash June Brent was assessed at $19.55/19.65. On SIMEX, it was trading around $19.50 against IPE's close at $19.03. Depending on the outcome of the UN-Iraq talks, June Brent could see either a low of $17.60 or a high of $22.50.

Spot premiums of MidEast June barrels slipped on thin demand. Most Japan endusers were said covered ahead of the Golden Week holidays stretching from late April to early May. Spot offers of June Oman were heard around 15 cents premium against 21 cents earlier. Spot offers of Malaysian grades held steady at APPI Tapis plus 50 cents or $20.00 fob. In the paper market, it was bid/asked at $19.10/19.50.

However, spot activity of Asian light sweet grades was stymied by negotiations between sellers and a Thai refiner whose tender closed overnight. Traders said a cocktail of grades comprising Malaysian Tapis, Australian Thevenard and Jabiru was offered. No further details were heard.

Spot premiums of Indonesian Minas range between evens to plus 10 cents over the ICP. Chinese endusers continued to show preference for Minas instead of Widuri given the low Minas prices. Spot premiums of Duri stayed strong around $1 on demand from fuel oil blenders in the region.-Reuter