Vietnam Sells More Bach Ho; Dubai Oil Strengthens: Asia Crude

Vietnam’s PV Oil sold as much as 900,000 barrels of its Bach Ho crude for June and July loading in the second round of deals following the closing of the country’s only refinery.

The company sold 300,000 barrels to Petroleo Brasileiro SA, known as Petrobras, and 600,000 barrels to Arcadia Petroleum Ltd., according to two traders who participate in the market. They declined to be identified because the information is confidential.

Brazil’s Petrobras paid a premium of about $3.80 to $4 a barrel more than benchmark Minas crude for a cargo loading around June 20, one of the traders said. That compares with 800,000 barrels of Bach Ho crude for July, which sold at a premium of about $6 a barrel to benchmark Minas oil.

PV Oil’s parent company, Vietnam Oil & Gas Group, shut the 131,000-barrel-a day Dung Quat oil refinery on May 15 until about June 15. Most of the oil processed at facility is Bach Ho.

Russia’s TNK-BP offered to sell 100,000 metric tons of East Siberia-Pacific Ocean crude, or ESPO, for loading July 13 to July 18, said two traders who participate in the market, declining to be identified because the information is confidential. The offer closes today.

PT Pertamina, Indonesia’s state-owned oil company, offered to sell 145,000 barrels of Geragai condensate for loading in July, according to a tender document obtained by Bloomberg News. Bids close June 7.

Dubai Timespreads

Dubai crude’s backwardation, when prices for prompt supplies are greater than future delivery, rose 1 cent. Swaps for July were $1.33 cents a barrel more than September, according to data from PVM Oil Associates Ltd., a London-based broker.

The difference between oil delivered in one month compared with three months, known as the timespread, has widened 21 percent during the last month from $1.10 on May 4, a sign that demand from refiners is increasing.

The July Brent-Dubai exchange for swaps, which measures the European marker grade’s premium against the Middle Eastern oil, dropped 7 cents to $2.90 a barrel, according to data from PVM. The August EFS was down 14 cents to $2.89.

Oman for July delivery slid $3.53 to $95.18 a barrel at 12:30 p.m. on the Dubai Mercantile Exchange.

Eight Dubai partial cargoes were sold today, according to a survey of traders who monitor the Platts pricing window. Royal Dutch Shell Plc was the only buyer, paying $95.15 a barrel for four 25,000-barrel lots from Phibro LLC, two from Glencore International Plc and one from Mercuria Energy Trading SA. Shell bought the eighth from Mercuria at $95.10.

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