SINGAPORE- Middle East crude benchmarks Oman and Dubai fell on Wednesday as Asian refiners' buying interest cools while the December-loading trade cycle approaches its end.

The Oman differential, after briefly turning positive for the previous four sessions, flipped back to a discount of 13 cents a barrel at the Singapore market's close, down from a 20 cent premium at Tuesday's close, trade data compiled by Reuters showed. 

In the spot market, Taiwan's Formosa is seeking 1 million barrels of sweet crude for delivery over the second half of January via a tender closing on Thursday.

India's IOC was seeking crude loading Dec. 11-20 via a tender closing on Wednesday.

China's Haike has closed a tender seeking crude for delivery from Nov 15. to Jan. 15 next year with bids valid until Thursday.

With China's spot demand seen picking up as private refiners look for feedstock for next January, traders have increased offer prices, industry sources said. Brazilian Lula crude was heard to be offered at about $1.50-$1.90 a barrel above ICE Brent on a delivered basis, while Congo's Djeno crude was heard to be offered at around $1.20 above Ice Brent.

 

ASIA-PACIFIC CRUDE:

Australia's Santos has closed 2021 term tender for Cooper Basin crude, with bids valid until Thursday. Estimated production is 27,000 barrels per day (bpd).

 

REFINING

South Korea's S-Oil Corp on Wednesday said that refining margins are expected to improve in the fourth quarter, supported by increased demand for kerosene and diesel ahead of the winter season. 

China this week started construction of a huge petrochemical and refining complex in east China's Shandong province, local state media reported, four months after the $20 billion project received state approval.

 

 

NEWS

China's domestic aviation fuel consumption rebounded close to pre-COVID levels in September thanks to a fast recovery in passenger travel and cargo freight, though demand from international flights remained weak, industry sources said. 

Oil company Neptune Energy made a small oil discovery near the Fenja field in the Norwegian Sea, Norway's Petroleum Directorate said on Wednesday. 

Chevron Corp will lay off about 25% of Noble Energy employees who joined the oil major after its $4.1 billion purchase of the smaller rival, the company told Reuters on Tuesday.

(Reporting by Shu Zhang Editing by David Goodman ) ((shu.zhang@thomsonreuters.com; +65-6870-3549; Reuters Messaging: Twitter @shuzhang4))