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Asia crude oil: Key market indicators for June 28-July 2
In the week of June 28-July 2, crude oil will continue its climb as market sources expect the OPEC+ coalition to announce only a marginal increase in production quotas in August.
August ICE Brent crude futures were pegged at $76.07/b at 0200 GMT June 28, 35 cents/b higher from the 0830 GMT Asian close on June 25.
Middle East Crude Market participants await the issuance of August official selling prices with a price hike for lighter crude grades on the back of a stronger sour complex this month. India’s crude demand is in focus amid some COVID-19 recovery, while Chinese demand may stay capped amid less-than-expected import quotas issued.
WAF crude sellers scramble for buyers as Indian refiners step back
West African crude sellers have been dealt a big blow by key buyer India slowing down its purchases as the COVID-19 pandemic continues to ravage the world’s third-largest oil consumer.
India’s state-owned refiners typically issue tenders for a large proportion of their crude requirements, but with the latest wave of COVID-19 infections in the country still raging, no new tenders have been issued since late April, according to trading sources.
Refiners such as Indian Oil Corporation, Hindustan Petroleum Corp Ltd and Bharat Petroleum Corp Ltd usually buy significant amounts of Middle Eastern and West African crudes through regular tenders.
West African crude sellers have been dealt a big blow by key buyer India slowing down its purchases as the COVID 19 pandemic continues to ravage the world s third largest oil consumer.
Asia crude oil: Key market indicators this week
Asia’s crude oil market activity in the May 10-14 trading week is expected to pick up steam, although sentiment continues to be weighed down by demand concerns across Asia amid COVID-19 resurgences, which have caused several countries to introduce, or increase lockdown measures.
July ICE Brent crude futures were pegged at $68.59/b at 0300 GMT May 10, up 65 cents/b from the 0830 GMT Asian close on May 7.
Middle East Crude Activity in the week ahead will focus on the issuance of buy and sell tenders by Asian refiners and Middle East producers for July-loading barrels, respectively, as China, Japan and Russia emerge from seasonal holidays. However, trade is likely to remain muted as India continues to deal with a surge in COVID-19 infections, while other countries like Thailand and Japan also deal with fresh outbreaks.