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Crude oil prices

ease in Asia

SINGAPORE: Spot crude oil prices in Asia retreated after their overnight rally in New York.

Tuesday's oil stock data released by the American Petroleum Institute was seen as neutral with the 214,000 barrels build in distillates offsetting the 1.4 million barrels draw in crude.

Cash May Brent was assessed at $20.20/20.30 for most part of Asian trading on Wednesday. On SIMEX, it was bid/asked at $20.20/$20.21 against its previous settlement on the IPE 20.19. Strong resistance for May Brent was still pegged at $20.30 and support was seen at $19.68. April Brent was notionally$1.25/1.35 over May Brent.

Spot activity for MidEast crudes remained subdued. Some traders were expecting premiums for Oman to ease as its February official selling price differential against Dubai widened to 81 cents from about 60 cents. However, others felt the crude might see continued support from US endusers as the prices of WTI widen against MidEast crudes. The WTI-Oman spread was seen around $4.30 per barrel, a level seen sufficient to offset the freight charges of about $1 and miscellaneous costs involved in delivering one million barrels of Oman to the States.

Spot offer of end April-May lifting Malaysian Tapis crude remained at $21.00 per barrel fob or at APPI Tapis plus $1.10.

Offers Tapis into the US were seen at WTI less $1.00-1.25 fob basis. About 960,000 barrels of Tapis would be offered into Chile's tender to buy May 25-29 delivery crude. The tender closes today. Traders said its main competitor would be West African Forcados.

Other May lifting Malaysian grades available comprised 450,000 barrels of Miri, 500,000 barrels of Tapis and potentially Labuan. Potential buyers included endusers in Singapore, Thailand and Myanmar. The latter deferred its April demand to May. Two May Vietnam Bach Ho were offered at 10 cents premium.-Reuter