Asia-Pacific Crude Traders Look to More Supply

Asia-Pacific crude market held steady on Monday as traders eyed rising supply from Libya and South Sudan while most of the June-loading cargoes have been sold. South Sudan is expected to increase Dar Blend crude exports to 5.4-5.6 million barrels in June from 4.8 million barrels in the previous month, traders said. "It's possible for exports to rise above 5 million barrels as they have been building up stocks," a trader said. Yet, fighting erupted in the northern oil town of Bentiu on Monday, hitting hopes for renewed peace efforts days after U.S. Secretary of State John Kerry visited to try and revive faltering negotiations. Around 4-5 cargoes of Libyan crude are expected to load from the two reopened eastern ports in the first half of May after months of protests sharply curbed exports. At the El Sharara oilfield, Libyan tribesmen have ended their blockade, but production cannot resume until a separate protest at a connecting pipeline is resolved, an oil official said. Brent-Dubai Exchange of Futures for Swaps (EFS) <DUB-EFS-1M>, or Brent's premium to Dubai swaps, was at $4.52 a barrel for June, up 13 cents from the previous session. West African oil exports to Asia are set to fall to around 1.72 million barrels per day (bpd) in May from 2.05 million bpd in April, a Reuters survey showed. A widening of the Brent-Dubai spread and lower crude demand in the second quarter due to seasonal refinery maintenance contributed to the decline in arbitrage flow. ....

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