SINGAPORE: Dubai edged higher in the Middle East crude market on Tuesday after Shell bought 15 of the 18 December partials traded during the window, trade sources said.
The oil major bought most of the partials from TOTSA at $49.30 a barrel, putting cash Dubai at 13 cents above swaps, up from parity in the previous session.
Trade for December-loading Middle East cargoes has thinned as most refiners have finished purchasing December feedstock, traders said.
The market is now turning its focus to outstanding tenders. Qatari state-marketer Tasweeq closed its Low Sulphur Field Condensate (LSC) sell tender for December-loading cargoes today. The tender is due to be awarded on Oct. 19.
Thai state refiner PTT also closed its sour crude import tender seeking either December-loading or Jan. 1-15 delivery crude for the Rayong-based IRPC refinery on Tuesday. Tender results are due to emerge in the coming days.
On the Russia Asia-Pacific crude market, trade for December light-sour ESPO Blend crude started at firm levels after Surgut awarded its December-loading sell tender at premiums above $3 per barrel to front-line Dubai quotes.
The Russian producer is likely to have sold the Nov. 30-Dec. 5 cargo to Trafigura at around $3.10-3.20 per barrel to Dubai quotes, and the Dec. 3-8 and Dec. 6-11 cargoes to Unipec at premiums between $3.20-3.30 per barrel.
ESPO Blend, which is a light-sour crude, is compared with light-sour Middle East crude like Abu Dhabi Murban.
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