The relative strength of Dubai versus WTI has encouraged exports of Napo from Ecuador to the Far East, Latin American crude market sources said Friday.
Core Petroleum is loading an Aframax-sized cargo of Napo, 19 API and 2% sulfur, around August 11 from the port of Esmeraldas to the Far East, said market sources.
On Friday morning the WTI/Dubai August swaps spread was called at just below $13.00/b.
"If the WTI/Dubai spread get wide enough, you have no barrels arbing to the US West Coast and a stronger pull of Ecuadorean crudes to the Far East," said one suppler of Latin grades, meaning if Dubai gets much higher than WTI Latin grades will price off the higher priced benchmark and will head to Asia.
In addition, a very large crude carrier, which holds 2 million barrels of crude, is currently en route to the Far East, said market sources. "That cargo won't deliver until end July, said one market source.
The US West Coast is the primary export market for Napo, although South American refiners also occasionally buy Panamax-sized cargoes.
