ASIA CRUDE OIL: Key market indicators for June 20-24

Oil prices are expected to remain under pressure in the week ended June 24 following heavy losses in the previous week ended June 17. Confidence in oil demand is holding up despite soaring inflation as fears of an impending recession kicked in.

Front-month August ICE Brent crude futures stood at $112.35/b at 0215 GMT June 20, down 77 cents/b (0.68%) from the June 17 settlement.

Middle East crude

** More spot buying is expected to emerge this week from various Asian refiners as demand cues remain stable and cracking margins drive the thirst for more crude.

** Interest for Basrah crude will be keenly watched especially for Basrah Heavy. SOMO issued a tender offering 1 million barrels of July-loading Basrah crude which closed June 16.

** Demand for Basrah Heavy this week is expected to be weaker compared with Basrah Medium amid news of more spot volumes being offered to buyers with little interest seen so far.

** Dubai cash-futures, M1-M3, averaged $7.58/b in the week ending June 17, against $7.22/b in the week ended June 10.

** Intermonth spreads were stable at mid-morning trade June 20 with August-September pegged at $2.48/b, narrower by 17 cents/b from the Asia close June 17.

** August Brent-Dubai Exchange of Futures for Swaps was pegged at $11.18/b at mid-morning June 20, down 33 cents/b from the Asia close June 17.

Asia-Pacific crude

** Cash differentials for August-loading cargoes of regional light sweet condensates are expected to remain dull this week amid poor naphtha cracks and overhang barrels.

** Across the light sweet crude complex, trade details for Australia's Ichthys Field Condensate are expected to emerge this week, along with the loading programs for Kutubu and Cossack crudes.

** On Far East Russian crudes, market participants will keep a close watch for any September-delivery barrels of Sakhalin Blend traded in the market amid the Russia-Ukraine conflict.

** On regional sweet crudes, traders will be looking out for tender results of August-loading barrels of Malaysia's Kimanis and Vietnam's Chim Sao, Ruby crudes. Spot trades for other Malaysian crude grades will also be in focus.

** Clarity on trade levels for Sudan/South Sudan's Nile Blend and Dar Blend are expected to emerge in the week, where cash premiums may rise on the month at the back of robust middle distillate and LSFO cracks.

Delivered crude

** Trade flow of delivered US WTI Midland crude will be in focus following rising regional crude prices, amid a wider Brent/WTI spread on the week.

** Market participants will monitor fresh trades of September delivery barrels of Brazilian Tupi crude to Asia, amid healthy demand from Chinese national oil companies.

Crude futures

** Soaring pump prices were already beginning to weigh on oil demand, latest European data showed. Average gasoline sales at sampled service stations in Great Britain declined 6% on the year overMay 1-June 12 after showing a marked slow down in growth in April, according to the the UK's Department for Business, Energy and Industrial Strategy.

** In the week ended June 17, the international crude oil benchmarks were lower with the August contract for ICE Brent futures down 7.3% on the week to settle at $113.12/b, while the July contract for NYMEX light sweet crude was 9.2% lower at $109.56/b.