SINGAPORE: Oman rose for a fourth session on Friday, moving to parity against Dubai swaps in a sign of stronger demand for the medium crude even as physical trade for May-loading cargoes has yet to commence.
Asian refiners are still waiting for more Gulf oil sellers to release their official selling prices (OSPs) to determine which grades they will purchase this month.
ADNOC raised the February OSP differentials to Dubai for Murban and Das by 56 cents a barrel from the previous month, in line with market expectation. Upper Zakum's OSP differential to Dubai rose 76 cents over the same period.
Iran, OPEC's third-largest producer, is also expected to raise the April OSP for Iranian Light for Asian customers to the highest versus a similar Saudi grade since 2011, as a lifting of nuclear sanctions this year buoys demand for its oil.
Iran is expected to price its light crude at 50 cents a barrel below the average of Oman and Dubai quotes to Asia in April, up 30 cents from the previous month, a source with knowledge of the matter said.
This places the official selling price (OSP) for Iranian Light at 25 cents a barrel above Saudi's Arab Light, the highest premium since 2011, trade data showed.
Iran could raise its oil exports in March to around 1.65 million barrels per day from 1.5 million bpd a month earlier on the back of higher crude shipments to Europe.
Iranian officials will also be in Indonesia next week to negotiate a potential short-term agreement for 120,000 barrels per day of Iranian crude oil for the Cilacap refinery in Central Java, oil officials said.
DME OMAN
DME Oman for May settled at $33.73 a barrel, up $0.49, at 0830 GMT. This put DME Oman at parity to Dubai swaps, up from a discount of 8 cents in the previous session.
Cash Dubai's discount to swaps narrowed 10 cents. Vitol bought a May partial from Reliance at $32.30 a barrel and Reliance sold a partial to Shell at $32.21.
MARKET NEWS
Kuwait has changed the way it prices oil for Europe, trading sources said, in a rare tactical move aimed at making its crude more competitive as the battle for customers between OPEC and non-OPEC rivals intensifies.
As US oil inventories reach all-time highs, cargoes of crude are increasingly flowing towards Europe, where higher prices and lower shipping costs have made the region an attractive hunting ground for those selling light sweet oil.
Vitol is looking to sell a stake in wholly owned storage company VTTI, in a bid to cash in on one of its most profitable businesses in the current downturn in crude prices, several banking and industry source said.
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