By ERIC YEP
Asia's crude-oil market is likely to be balanced in the
coming week as more regional refineries restart after maintenance, but weaker refining margins may limit refiners'
appetite for processing more crude, traders said.
Singapore's complex cracking margins have softened to around
$3.53/bbl, from around $6.34/bbl a week earlier, data from JBC
Energy showed, as margins for gasoil and kerosene fall from
Earlier this week, Dubai set the official selling price for
its October crude at parity to the Oman selling price, 5 cents
narrower than the previous month.
The spread between September Brent crude oil and Dubai crude
remains wide at around $4.18/bbl, helping boost demand for
barrels priced on the Asian benchmark.
A number of disruptions on the supply side are boosting
Iraqi southern crude exports could fall by as much as
500,000 bpd in September due to maintenance and rehabilitation work
at the South Oil Co. terminal, JBC Energy said.
"If confirmed, exports of Basrah Light will fall below 2
million barrels a day for the first time since April 2012. This
comes at a time when exports from Iraq are already sliding,"
It said disruptions at Libyan oil production and export facilities have resulted in the loss
of 150,000 bpd of production, bringing output to 1.05 million
bpd in July.
Additionally crude output from South Sudan may also be hit
as a border dispute with its neighbour Sudan threatens to
escalate. South Sudan produced 75,000 bpd of crude oil in June
and was expected to raise output to 200,000 bpd by
"If disruptions in Libya and South Sudan persist, this will
result in a redrawing of their contributions to the supply-side
of the global oil balance not only for this year but also for
next year," Deutsche Bank Securities said in a note.
Dow Jones Newswires