Enterprise U.S. Oil Annual Tender Fails on Low Bids -Traders
Enterprise Products Partners failed to award a one-year tender to sell processed condensate after a round of low bids, U.S. and Asian trade sources said on Friday.
High freight costs and a narrowing in prices for Brent and West Texas Intermediate crude have made it difficult for traders to export U.S. oil to Asia and Europe.
Last week, Enterprise offered to sell a monthly 600,000-barrel cargo of processed condensate over a year-long period, with deliveries starting in March, a tender document showed.
But, without securing the annual commitment, Enterprise has turned to offering spot cargoes for the ultra-light oil, a U.S.-based trader said.
Traders say the main issue is that the tender for the typically discounted product was not attractive, given the arbitrage between Brent and U.S. c
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Submitted Jan 30, 2015 By: