7 November 2024: 09:30 GMT
The giddiness from the Chinese stimulus continues across many markets. INE contracts have risen, fuelled by retail demand and this has opened the arbitrage to deliver Middle Eastern crudes into the INE qualified tanks. Such Arbs have led a lucky few like Vitol and Totsa buying relatively cheap Abu Dhabi grades to deliver into China. Of course, some Chinese sources complain, and they use the M word. But maybe in this case it’s in reference to the small retail guys
The Dubai window saw the Chinese come to the fore. PetroChina seized the role of biggest bidder, lifting offers from anyone and everyone. As is becoming customary, Unipec was a big seller and today and these two were rewarded: Unipec declared an Upper Zakum cargo to PetroChina. Shenghong joined in on the sellside again, while Totsa finally seemed to get tired out, collecting just a few partials, as did Equinor. As ever, Exxon was firmly on the sellside and hit numerous bids, while Trafi and Reliance also dished out a few. The Dubai physical premium has tumbled into November from its heights, where it averaged $1.53, but has slid to an average of $0.70 in November so far.
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