Asian Crude Falls, Light Grades Mixed

The market said 200,000 barrels of November Belida were traded between ICP +70 and +80 cents per barrel, promting some questions on why the premium had fallen so quickly. Just two weeks previously the premium was valued nearer $1.30.

While Belida was showing an apprently sharp decline in its premium, a producer sold December Tapis at a premium to quotes of $1.30 into a Thai refinery. Traders value December nearer $1.20 on a premium basis, but noted the 600,000 barrels of Tapis had guaranteed dates in late December.

Minas players said they were seeing bids in the early 40 cents, after China had purchased at 43 cents, despite the movement of West African grades into the region.This indicated a steady premium for the benchmark Indonesia grade.

Traders said China had taken three cargos of late November and December Cabinda, between dated Brent -$1.60 to -$1.80, while Indonesia had taken Qua Iboe and Bras River grades.

The pressure of falling Brent intermonth spreads finally weighed on Dubai intermonth spreads, traders said.

The December/January spread came in to 20/32 cents from a day-earlier 35/40 and January/February narrowed to 39/43 from a day-earlier 41/45.

The movement on spreads allowed the value of near month Dubai and Oman outright prices to rise by 60 cents, although Brent was down nine cents in London overnight.