That appetite from such refiners, often known as "teapots", has driven up spot premiums for oil from Africa, Europe, Russia and Oman, the sources said, with prices for some grades hitting multi-month highs. CPC Corp has awarded tenders to buy crude loading in March or for delivery in April, trade sources said.
The refiner bought one March-loading Upper Zakum crude cargo at a premium of not more than 5 cents a barrel to the grade's official selling price (OSP), they said. It also purchased 6 million barrels of West Texas Intermediate (WTI) Midland crude at premiums of $1.50 and $2 a barrel to dated Brent on a cost-and-freight basis for delivery in April, they said.
Sri Lanka's Ceypetco has issued a tender to buy a Murban crude cargo for delivery in April.
Santos has sold its March-loading cargo of Cooper Basin crude to Vitol at a premium of $5-$6 a barrel to dated Brent, a trader said. The cargo was likely to remain in Australia, traders said.
PTT did not award a tender to buy sweet crude on behalf of IRPC due to high offers. The trader has likely bought arbitrage supplies outside the tender to meet IRPC's demand, traders said.
Cash Dubai's premium to swaps rose 8 cents to 47 cents a barrel after Shell bought most of the March partials on Platts window. Separately, Total offered a Murban cargo loading on March 1-25 at 20 cents a barrel below its official selling price (OSP) and an Upper Zakum cargo at 10 cents a barrel below its OSP, but there were no buyers.