SINGAPORE--Australian oil and gas company Santos has sold heavy sweet crude Pyrenees at an all-time high premium of more than $10 a barrel as traders continued to stock up the oil ahead of a ship fuel change mandate, three trade sources said on Monday.
The 600,000-barrel cargo loading in late-July was sold to a trading company at a premium close to $15 a barrel above dated Brent, they said.
Pyrenees is one of a handful of Australian heavy sweet crude grades that are being sold at record premiums because of strong demand from traders who are storing the low-sulphur oil to prepare for a surge in ship fuel demand when IMO 2020 kicks in.
Libya’s largest oilfield, El Sharara, has been shut down since Friday due to a suspected valve closure and an investigation has been launched, the National Oil Corporation (NOC) said on Saturday.
Executive Director Birol cites slowing demand and glut of oil on the world markets.
WTI at Magellan East Houston on July 16 sank to a $4 per barrel premium to U.S. crude futures , the weakest since last August, trade sources said. It peaked at $11.25 per bbl in February.