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Asia-Pacific crude: Indonesian grades sink into wide discounts
[SINGAPORE] Asia-Pacific crude market remained depressed as unsold supply from previous months lingered, while differentials for Indonesian grades sank into deep discounts, traders said on Thursday.
Indonesia Duri's discount to ICE Brent widened after Chevron offered 100,000 barrels for October loading at $8 a barrel on RIM, down 50 cents from Wednesday, the traders said.
Chevron also offered 50,000 barrels of Minas/Duri spread for October at US$1.50 a barrel, which puts the flagship Indonesian grade at a discount of about US$6.50 to ICE Brent, they said.
Kangqi offered 100,000 barrels of Senipah condensate for October loading at US$5 a barrel below ICE Brent, down from a discount of US$4 in the previous session, traders said.
PV Oil offered two 300,000-barrel cargoes of October-loading Chim Sao via a tender, adding to the glut in the market.
The tender will close on Friday with bids valid until Monday.
For Russian grades, Vitol has snapped up three cargoes in tenders. It bought two ESPO cargoes from Surgutneftegaz at US$1.10-US$1.30 a barrel above Dubai quotes for loading in Oct 26-29 and Oct 29-Nov 1.
It also took ONGC's Sokol cargo at about US$3.50 a barrel above Oman/Dubai quotes for loading on Nov 14-20.
West African crude oil exports to Asia are set to fall to 1.68 million barrels per day (bpd) in September, their lowest since August 2014, shipping data and a survey of traders showed on Wednesday.