• 3 minutes China's aggression is changing the nature of sovereignty.
  • 8 minutes Will Variants and Ill-Health Continue to Plague Economic Outlooks?
  • 11 minutes Europe gas market -how it started how its going
  • 3 hours Russia, Ukraine and "2022: The Year Ahead"
  • 1 day Amazing!...see article: "Turkmenistan To Close "Gates Of Hell" Gas Fire" by Irina Slav
  • 7 hours Why is oil priced and traded in U.S. dollars?
  • 3 hours Ukrainian Maidan after 8 years
  • 6 hours Russia oil production live month after month starting from November 2021 - official stats from Rosstat agency
  • 1 day Сryptocurrency predictions
Editorial Dept

Editorial Dept

More Info

Premium Content

Asian Buyers Look To The Spot Market For Oil

1. Asian Buyers Seeking Spot Options Amidst Expensive OSPs

- Several Asian refineries surveyed by S&P Platts admitted they would try to tap into the spot market more extensively in 2022 as termed Middle Eastern OSPs remain too expensive.

- Currently, some 12 million b/d of crude is moving every month from Middle Eastern producers to the Asia Pacific and roughly two-thirds of it takes place under OSP-priced term contracts.

- The steep Dubai backwardation curve that persisted throughout 2021 compelled Middle Eastern producers to keep on ramping up official selling prices, effectively penalizing buyers in times of sudden forward structure changes.

- Partially, the drive to buy more cargoes on the spot market also comes from the increasing likelihood of seeing a nuclear deal coming to fruition in 2022.

2. Indonesia Coal Export Ban Sends Ripples Across Asia

- Only a week has passed since the world’s largest exporter of thermal coal, Indonesia, announced it would halt coal exports to keep its production at home as coal markets experience a period of unprecedented turmoil.

- ICE Newcastle coal prices have gained almost $50 per metric ton this week, trading only marginally below the $200 per metric ton mark.

- Routinely, half of Indonesia’s coal exports are supplied to China but Chinese prices saw very little change this week.

- The export ban might be lifted soon as other (albeit smaller) buyers of…

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News