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Australia's BHP sells Pyrenees crude at lower premium as VLSFO market weakens -sources

Published 17/02/2020, 02:48 pm
Updated 17/02/2020, 02:49 pm
© Reuters.  Australia's BHP sells Pyrenees crude at lower premium as VLSFO market weakens -sources

SINGAPORE, Feb 17 (Reuters) -

* Australia's BHP Group Plc BHP.AX sold a cargo of Pyrenees crude loading April 11-15 at a premium of just over $21 a barrel to dated Brent via a spot tender, well below the last traded level, three trade sources said on Monday

* The buyer of the cargo was not immediately known

* Prior to this, Santos sold a cargo of March-loading Pyrenees crude at a record premium of above $30 a barrel Pyrenees is one of Australia's heavy sweet crude grades that have been sold at record premiums starting late last year, supported by strong demand from traders buying the grades for blending into marine fuels that meet new low-sulphur rules - known as IMO 2020 - for shipping fuel from the International Maritime Organization. The spot premiums have fallen this month, however, as Asia's very low-sulphur fuel oil (VLSFO) market retreated from its record highs, while the coronavirus outbreak has weighed on overall crude demand and market sentiment Earlier this month, spot premiums for Australia's Van Gogh crude loading March-April fell to $15-$16 a barrel to dated Brent, well below the last traded level

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