SINGAPORE: Omani crude has bucked a weak trend in the oil market, emerging as the most expensive medium-sour grade in the Middle East, traders said on Friday.
On the Dubai Mercantile Exchange, November Oman's discount to Dubai swaps narrowed to 12 cents a barrel at 0830 GMT, from as wide as nearly $1 last week.
"Oman at Dubai minus 12 cents is very, very high at a time when other grades trade at the equivalent of Dubai minus $2 or so," a trader with a western firm said.
Qatar Marine, of a similar quality to Oman, was traded at a wide discount of $2 a barrel below Dubai quotes while cash Dubai has been valued at discounts of more than $1 to Dubai swaps for most of this month.
Oman's November-December spread could also move into backwardation following trades at parity on Friday, the trader said, compared with a 65 cents a barrel contango for global oil price marker ICE Brent.
"It's unreal," a trader with a Western firm said. "I think there is a lot of (pricing) agenda there."
Traders attributed the strength in Oman to robust demand from Shell.
"Shell is bidding Oman in the Platts window and offering Dubai," the first trader said.
Shell bought six Oman partials on the Platts window from SK Energy at $95.10-$95.21 a barrel on Friday, bringing its total purchases this month to at least 10 partials.
Vitol sold nine November-December Dubai partial spreads to Shell at discounts of 90 cents a barrel on Friday.
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