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JLC Price Assessment is aimed at becoming a pricing benchmark for China's spot bulk

commodity transactions and provide an objective basis for China to gain pricing

power in the international market.

JLC Crude Price Assessment View “Crude Price Assessment Methodology”
Product City/Province Grade Delivery Date Benchmark Assessment Date Premium DES Price Assessment Unit View
Low High Mid Low High Average
DES Shandong Price Assessment for Imported Crude Shandong Ports Espo Not logged in Not logged in May 25 Not logged in Not logged in Not logged in Not logged in Not logged in Not logged in Not logged in USD/bbl
Lula Not logged in Not logged in May 25 Not logged in Not logged in Not logged in Not logged in Not logged in Not logged in Not logged in USD/bbl
Djeno Not logged in Not logged in May 25 Not logged in Not logged in Not logged in Not logged in Not logged in Not logged in Not logged in USD/bbl
Oman Not logged in Not logged in May 25 Not logged in Not logged in Not logged in Not logged in Not logged in Not logged in Not logged in USD/bbl

Shandong imported crude decline amid poor buying interest

Beijing (JLC), May 25, 2020--The premiums of the prevailing imported crude in Shandong ports held steady on Monday. While OPEC production cuts have helped boost market sentiment, independent refineries have resisted high offers amid high crude inventories and decreasing margins.

The latest Surgut ESPO Blend crude oil for July delivery is reported to be sold at a premium of $3.20 /bbl to FOB Dubai crude oil. A market source said despite the surge in offers, traders have had to lower prices slightly for ESPO Blend crude to attract more buyers amid weak demand.

Russian ESPO Blend for July delivery was assessed at a premium of $4.0/bbl to the September ICE Brent futures on a Delivered Ex-ship (DES) Shandong basis, down $0.5/bbl from Friday. Brazilian Lula crude for July delivery was assessed at a $3.0/bbl premium to the September ICE Brent futures on a DES Shandong basis, down $0.5/bbl from Friday.

Congo’s Djeno crude for July delivery was assessed at a premium of $2/bbl over the September ICE Brent futures on a DES Shandong basis, flat from last Friday. Oman crude for July delivery was assessed at a premium of $2.0/bbl over the September ICE Brent futures on a DES Shandong basis, stable from last Friday.

A market source said the traders are unlikely to significantly reduce the offers amid high cost of procurement. Recent warming of the oil market has also boosted traders' confidence in stockpiling. With the recent rebound in crude oil futures, independent refineries' margins have narrowed, making them more cautious about purchasing. The premiums of imported crude in Shandong ports are expected to be range-bound.