Profits from turning crude into oil products in Asia rose to the highest level in seven months.
The gains from refining a barrel of benchmark Dubai crude into fuels such as diesel and gasoline priced in the regional trading hub of Singapore averaged $7.04 during the last five days, the highest since February, according to data compiled by Bloomberg. The 30-day average is $4.99.
Qatar International Petroleum Marketing Co., known as Tasweeq, offered to sell six cargoes of Al-Shaheen crude totaling 3.6 million barrels, for loading in October, said two traders who participate in the market, asking not to be identified because they aren’t authorized to speak to the media. Bids are due Aug. 14.
PV Oil Corp., Vietnam’s state-run marketing company, sold Bach Ho crude loading in October at premiums of $2.50 to $3 a barrel more than dated Brent, said three people who participate in the market.
PV Oil sold 2 million barrels of the grade to four buyers, said one of the people, who asked not to be identified because the information is confidential. Arcadia Petroleum Ltd. bought one cargo, two of them said.
The Vietnamese company also agreed to sell Rang Dong crude from October to March at premiums of about $2.50 to $2.60 a barrel, said three people who participate in the market. Chevron Corp. is one of the buyers, said two of the people.
PV Oil is also seeking to sell two cargoes of Chim Sao crude, totaling 600,000 barrels, and 200,000 barrels of Rang Dong for loading in October, said three people who participate in the market. The offers close Aug. 15.
Iraq Outpaces Iran
PV Oil is also offering 300,000 barrels of Te Giac Trang for Oct. 1 to Oct. 5, according to a tender document obtained by Bloomberg News. Bids are due Aug. 17.
Iraq’s crude production has risen to 3.2 million barrels a day and will increase as planned to 3.4 million barrels a day by year’s end, Deputy Prime Minister for Energy Affairs Hussain al-Shahristani said.
The country’s output has now surpassed that of Iran and Kuwait, al-Shahristani told reporters yesterday in Baghdad. The figure would be the highest level in more than 20 years.
The Brent-Dubai exchange for swaps, which measures the European oil’s premium to the Mideast marker, rose 35 cents to $5.10 a barrel for September, according to data from PVM Oil Associates Ltd., a London-based broker. The October EFS gained 9 cents to $3.81.
Dubai crude’s backwardation, when the price for near-term deliveries is greater than later supplies, rose 3 cents. Spot prices were $1 a barrel more than October levels, according to data from PVM.
Oman oil for October rose 42 cents to settle at $108.86 a barrel at 12:30 p.m. on the Dubai Mercantile Exchange.