Annual LUKOIL stockholder meeting in Moscow

MOSCOW (LUKOIL) -- In Moscow Annual LUKOIL general stockholder meeting took place. Annual Company report 2009 was adopted and accountant report by the results of the last financial year.

Stockholders approved 52 ruble dividend for one usual stock according to Company's results in 2009 (50 rubles by 2008).

The reward and expense compensation for Board members and Revision Committee was approved. KPMG was confirmed as independent Company auditor. The Meeting has elected the Board and Revision Committee and adopted changes in Regulations of preparing and realization of general stockholder meeting and strategic deals for the company.


EVENING SNAPSHOT - Asia Markets Summary

24 June 2010 10:57 [Source: ICIS news]

SINGAPORE (ICIS news)--Here is Thursday's end-of-day Asia oil and chemical market summary from ICIS.

CRUDE: Aug WTI $76.24/bbl, down11 cents BRENT: Aug $76.16/bbl, down 11 cents
Crude prices edged lower on Thursday afternoon following on from losses the previous day. Crude prices fell on Wednesday after an unexpected build in US crude stocks and reports that the economic recovery in the US had slowed. At 8:30 GMT, the Dubai Mercantile Exchange (DME) August Oman futures contract settled at $73.96/bbl, down $1.72/bbl on the previous close.

NAPHTHA: $658.50-659.50/tonne CFR Japan, up $2-4
The first half August contract closed higher on Thursday at $658.50-659.50/tonne CFR (cost and freight) Japan. Asian naphtha crack spread versus Brent widened to a three-session high of $90.47/tonne. Meanwhile the second half August contract was valued at $659.00-660.00/tonne CFR Japan and the first half September contract stood at $659.00-660.00/tonne CFR Japan.

BENZENE: $790-805/tonne, up $5
Prices edged higher with the August bid-offer level cited at $792-805/tonne FOB Korea. Some deals were heard for July loading at $795/tonne FOB Korea and for August at $800-803/tonne FOB Korea, but this could not be confirmed.

TOLUENE: $730-745/tonne, up $10
Prices firmed in the afternoon with deals heard for August loading at $740-750/tonne FOB Korea. A bid for H2 July loading was also cited at $730/tonne FOB Korea.

Nippon Oil nominates July benzene ACP on par with June settlement

SINGAPORE (ICIS news)--Japanese benzene producer Nippon Oil has kept its Asia Contract Price (ACP) nomination similar to the company's June settlement price, a company source said on Thursday.

The company nominated its contract price at $845/tonne ( ┬684/tonneCFR (cost and freight) Asia, stable from the previous month's settlement, the source said.

Nippon Oil plans to settle the contract price with its customers on 30 June, the source added.

The benzene ACP is nominated and settled by Nippon Oil and its customers every month.

Some of the key benzene end-users within Japan are styrene monomer (SM) producer Asahi Kasei and phenol maker Mitsui Chemicals.

Asia Group II base oil suppliers to keep July prices firm

24 June 2010 13:40 [Source: ICIS news]

SHANGHAI (ICIS news)--Asian suppliers of Group II base oils are reluctant to cut their July prices for buyers in China amid strong demand in the US, producers and traders said on Thursday.

To spur sales amid cooling demand, traders in China said they sold their inventories below cost and requested base oil producers in Asia to reduce their July offer prices for the Chinese market.

Group II base oil prices were currently at $870-900/tonne (┬705-729/tonne) CFR (cost & freight) China for 150N and $980-1010/tonne (┬794-818/tonne) CFR China for 500N, as assessed by ICIS.

However, most deals in eastern China were recently done at about CNY8,200-8,400/tonne ($1,204-1,233/tonne) ex-tank for 150N and CNY9,200-9,500/tonne ($1,351-1,395/tonne) ex-tank for 500N, buyers and sellers said.

China ex-tank prices include a 6% import tax, a 17% value-added tax (VAT) and a consumption tax of around CNY1,300/tonne, indicating that domestic prices of Group II base oils were much lower than import costs.

Most market players said that Chinese domestic prices of Group II grades show no signs of recovering in July due to ample supply and continued weak demand, with the country's importers hoping that Asian refineries could reduce July offer prices by about $30-50/tonne.

As a result of tight supply in the US, Group II refineries in Asia could export their material there if Chinese buyers don't accept their July offers.

Suppliers in Taiwan and South Korea said there were more US buyers calling in to purchase any Group II grades. They added that they are not worried about sales in July and they plan to keep prices high.

ExxonMobil announced on 22 June that it will raise prices for all base oils by $50-60/tonne, with effect from 9 July, providing further support to Group II base oil prices in Asia

Some end-users said they were originally intending to build up their Group II stocks in July to prepare for tight supply in August and September, when Formosa's refinery in Taiwan shuts down, but high import costs were making them reconsider.

Major suppliers of Group II base oils to China include ExxonMobil, GS Caltex, S-Oil and Formosa.

($1 = ┬0.81/$1 = CNY6.81)

China's imports of MEG to fall further in June

24 June 2010 12:20 [Source: ICIS news]

SINGAPORE (ICIS news)--China's imports of monoethylene glycol (MEG) is expected to fall further in June after sliding 17% month on month to 527,500 tonnes in May amid record high inventory and slow buying, traders said on Thursday.

China's port inventories have been at a record high of around 600,000 tonnes since April, after the country imported over 600,000 tonnes of the material in March and April, a trader said.

Buyers in China would be able to bring in more shipments from abroad only after they had secured storage tanks, he said.

⌠Almost all the tanks are full, he added.

Abundant supply and falling crude values had pushed down MEG prices to $710-720/tonne (┬575-583/tonne) CFR (cost and freight) China Main Port this week, a sharp decrease of $230-240/tonne, or 25%, since early April, according to ICIS data. (Please see graph below)

MEG cargoes from abroad - including those from Canada, US, Korea, and Singapore - slumped 31-44% in May, said a trader who deals with US cargoes.

China imported 42,700 tonnes less cargoes from US and Canada in May, according to a trader.

Production cutbacks in the region also had also partly reduced import volumes of MEG, said another trader.

Major producers in Korea and Singapore were reported to had either shut their plants for maintenance or reduced operating rates due to feedstock issues, he added.