ME under pressure over unsold Abu Dhabi cargoes
Tokyo, July 31, 2010
Sentiment for Middle East crudes remained weak as unsold Abu Dhabi grades were assessed at lower differentials by traders with the appetite for September spot crudes believed to be mostly quelled.
Views are expected to stay that way as the market focus switches to October barrels, traders said, with the overhang from September and stable to lower demand in Asia likely to continue weakening sentiment for spot crudes.
"Without some drastic OSP (official selling price) adjustments, I expect the same situation in the October-loading market," said one trader.
Spot cargoes of September-loading Abu Dhabi Murban and Upper Zakum crude were both still available, traders said, and it would take discounts falling to below 40 cents to Adnoc to stimulate buying interest.-Reuters