SINGAPORE, Aug 8 (Reuters) - The Asia-Pacific crude market
remained weak on Wednesday as Vietnam's prompt release of Bach
Ho and a possible resumption of South Sudan's output may add to
unsold supply in the market.
Vietnam is expected to sell another 1.2 million barrels of
Bach Ho, on top of the 700,000 barrels it sold last week, if its
sole refinery is shut for 14 days. It unexpectedly shut the
plant last weekend.
The distressed cargoes may be sold at differentials from
parity to $2 a barrel above dated Brent, down from premiums of
$4-$5 in last week's tender, traders said.
Supply could swell further if South Sudan resumes oil
production in September after reaching an interim agreement with
Sudan on oil export fees. It may take a year for South Sudan to
return to its full capacity of 350,000 barrels per day (bpd),
its top negotiator told Reuters.
"We're expecting to begin production immediately in
September, especially for the Upper Nile oil, of Dar Blend,"
said Pagan Amum, South Sudan's lead negotiator with Sudan at the
African Union.
"Production will begin from 150,000 (bpd) ... and within
three, four months, it would go to 180,000, 190,000 (bpd), and
then it will go to the (old) level, and possibly higher than the
time (before shutdown) within one year," he said.
* TENDERS
- India's MRPL sought 600,000 barrels of sweet crude in two
tenders for loading in the second-half of September and first
half of October, respectively The tenders will close on Aug. 13
and stay valid until Aug. 17.
- India's HPCL cancelled a tender to buy sweet crude for
September loading.
- Indonesia's Petral offered 150,000 barrels of Geragai
condensate for Sep. 23-27 loading. The tender will close on Aug.
13 with bids valid until a day later.
* MARKET NEWS
- West African crude exports to Asia slowed in September to
1.58 million barrels per day (bpd), down from 1.84 million bpd
in the previous month.
Despite the blip, Asia is set to import record volumes of
oil from West Africa this year as increasing supplies of high
quality crude drive down its export prices and some buyers shun
their traditional supplier, Iran.
- Supply of crude that underpins the Brent contract will
fall to a record low in September, supporting prices and raising
further doubts about the use of dwindling North Sea oil as the
main global oil benchmark.
CRUDE Price Prev Change
SEP Brent 111.48 110.38 +1.10
SEP Brent/Dubai EFS 5.05 4.86 +0.19
PRODUCT CRACKS
SEP fuel oil crack -5.16 -4.87 -0.29
SEP gasoil crack 18.73 18.48 +0.25
SEP naphtha crack -10.15 -9.94 -0.21
COMPLEX REFINERY MARGINS
Today 9.91
Last 5 days 10.57
Last 365 days 7.36
(Reporting by Florence Tan; Editing by Kim Coghill)