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JLC intends to make the DES Shandong assessments to be benchmarks for crude trading in the near future.

JLC DES Shandong Imported Crude Assessments View Crude Price Assessment Methodology

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Grade Delivery Date Benchmark Publication Date Premium($/bbl) Outright Price($/bbl) Outright Price(CNY/mt) View
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ESPO 2020-07-14

The maximum number of selected data items is six.

Lula 2020-07-14

The maximum number of selected data items is six.

Djeno 2020-07-14

The maximum number of selected data items is six.

Oman 2020-07-14

The maximum number of selected data items is six.

JS 2020-07-14

The maximum number of selected data items is six.

JS refers to Norwegian Johan Sverdrup crude
Imported oil weakens on bearish sentiment on Jul 14

Beijing (JLC), July 14, 2020--The premiums of major imported crude in Shandong ports moved down owing to expectation of price decline, although offers from sellers were still unchanged. "Many Shandong independent refiners are eager to move the oil out of the tanks at ports, rather than purchasing supply," a market source said.

Despite firm offers, the premiums for JLC-assessed crude grades decreased due to lower buying interest. Russian ESPO Blend grade was assessed at $3.1/bbl over October ICE Brent futures for August delivery, on a DES Shandong basis, down $0.5/bbl day on day.  

Brazilian Lula grade was assessed at $2.6/bbl over November ICE Brent futures for September delivery, on a DES Shandong basis, down $0.2/bbl day on day. Congolese Djeno grade was assessed at $2.8/bbl over November ICE Brent futures for September delivery, on a DES Shandong basis, down $0.3/bbl day on day. 

Omani Oman grade was assessed stable on the day at $1.9/bbl over November ICE Brent futures for September delivery, on a DES Shandong basis. Norwegian JS grade was assessed at $2.8/bbl over November ICE Brent futures for September delivery, on a DES Shandong basis, down $0.2/bbl day on day.

Asian major producers raised their OSP recently amid firm international crude futures. However, the downstream demand were suppressed by the rapid increase in oil prices, as regional oil demand has not fully recovered amid coronavirus spread.

Meanwhile, many Shandong independent refiners had to pay the demurrage charge, as the dirty tankers were difficult to be discharged due to port congestion. “We do not buy any more until port congestion eased," a local refiner said. The premiums of imported crude in Shandong ports are expected to remain muted amid weak demand.