The premiums for the middle distillate rich sweet Asian grades of Malaysian Tapis and Kikeh soared to their highest level since premiums to Asian Dated Brent were first published by Platts in December 2008 as the Libyan crisis deepened and continued to stoke fears of supply woes West of Suez, Platts data showed Wednesday.
April loading Kikeh was assessed at a premium of $7.35/barrel and April loading Tapis was assessed at a premium $6.25/b to Platts Dated Brent at the close of Asian trading hours Wednesday.
Shell was earlier heard to have bought one spot Kikeh cargo for April 10-20 loading from Murphy Oil at a premium of Dated Brent plus $6.80-7.00/b.
A Singapore-based trader attributed Kikeh's rise to the absence of arbitrage opportunities to Asia for West African crudes such as Qua Iboe and Forcados.
Differentials for the middle distillate rich sweet grades of Nigerian Qua Iboe and Forcados rose to their highest level since February 2009, Platts data showed Wednesday.
Nigerian Qua Iboe was assessed at Dated Brent plus $3.225/b and Forcados was assessed at Dated Brent plus $3.325/b at the close of Asian trading hours Wednesday. Levels were last higher than this on February 6, 2009, when they were assessed at Dated Brent plus $3.23/b for Qua Iboe and Dated Brent plus $3.38/b for Forcados.
These levels were roughly equivalent to Dated plus $7.20-7.50/b delivered into Asia with inter-regional freights around $4/b, which effectively excludes any arbitrage opportunities because Kikeh and Tapis should command a premium to Qua Iboe and Forcados as they are lighter and less sulfurous.
