SINGAPORE: The Middle East crude market was mixed on Friday as DME Oman's differential to Dubai hit the strongest this month, but Al-Shaheen crude discounts widened.
Tasweeq sold five January-loading cargoes of Al-Shaheen at discounts from $1.63 to $1.75 a barrel, or an average of $1.71, to Dubai quotes, traders said. Last month, December cargoes were sold between a premium of 40 cents and $1 discount to Dubai quotes.
ExxonMobil bought two of the January-loading cargoes while TonenGeneral and Chevron purchased one each, they said. Petronas or SK Energy bought the remaining cargo, traders said.
Other Gulf grades loading in January have yet to move.
Weak Dubai prices and stronger demand for middle distillates and fuel oil buoyed refining margins in Asia and may encourage refiners to increase crude runs.
The average margin for a complex refinery in Singapore in the last 15 days is more than $6, up from $5.38 in October, Reuters data showed.
January differentials for Gulf grades could also be supported by reductions in official selling prices (OSPs) for certain grades. Qatari crude supply could also tighten in November due to weak demand and a refinery maintenance.
Still, buyers are reluctant to pay premiums as supply remained plentiful in Asia due to unsold cargoes from the previous months.
"If someone is willing to pay a premium, one or two cargoes should have moved," a trader with a North Asian refiner said.
North Sea crude supply will also increase in December while more Kurdish oil could hit the market as Baghdad and the semi-autonomous region of Kurdistan have reached a deal.
Comments
Comments are closed for this article.