SINGAPORE: The Middle East crude market held steady on Wednesday as traders evaluated the impact of the latest official selling prices (OSPs) from Abu Dhabi National Oil Company (ADNOC).
ADNOC set the May retroactive selling price for its benchmark Murban crude at $47.35 per barrel, which puts it at a $3.08 per barrel premium to average Dubai quotes for the month, up 11 cents from the differential for the previous month.
The price increase is in response to the sale last month of July-loading cargoes mostly at small premiums.
Some market participants had expected ADNOC to cut Murban's OSP differential to Dubai by 10 cents a barrel to stay competitive in the light sour crude market.
The price rise may push Murban's differential for August-loading cargoes, which start to trade later this month, into small discounts, traders said.
In addition, Saudi Arabia, the world's top crude exporter, has kept its July official selling price for Arab Extra Light unchanged from the previous month and is also expected to increase production of the grade. This could also push Murban to a discount for August, traders said.
Separately, Qatar will double its capacity for processing condensate by almost 150,000 barrels a day (bpd) in August when trials begin on a new splitter at the Ras Laffan refinery with commercial production starting by October, a Qatar Petroleum official said.
Condensate exports from Qatar will drop from the current
500,000 bpd to about 350,000 bpd when the 146,000-bpd splitter starts operating, said the official, who declined to be named as he was not authorised to speak publicly.
"Overall, there should be less condensate supply in August, but it would still be enough for everyone considering how long the market was in July," a Singapore-based trader said.
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