SINGAPORE: The Middle East crude market rose on Thursday, buoyed by strong bids by Shell for Abu Dhabi's Das Blend.
Shell first bid for March-loading Das at 80 cents a barrel above its OSP, before raising it to 90 cents on the window, traders said. The grade was last traded in the physical market at a premium of about 30 cents.
The crude's value may have been boosted by the strength in naphtha, the trader said. Naphtha cracks hit a 1-1/2 month high early this week on tighter spot supply.
The March premium for flagship Abu Dhabi Murban is also expected to rise along with Das, a second trader said. Murban was last traded at 17 cents a barrel above its OSP after JX Nippon bought a cargo at that level, likely from Mitsui, traders said. The premium was 2 cents higher than the previous trade.
Qatari condensate values have also surged by about $1 from the previous month after Tasweeq sold three deodorised field condensate (DFC) cargoes for March loading via a tender, traders said. SK Energy bought one of the cargoes at a premium above $1.20 a barrel to Dubai quotes, they said, although this could not be independently verified.
March-loading DFC cargoes were traded at premiums between 20 and 60 cents a barrel prior to the tender, one of the traders said.
The differentials for DFC condensate for February loading were close to parity against Dubai quotes, traders had said.
TENDERS
Rosneft offered three ESPO cargoes for loading on Feb 28-March 5, March 1-6 and 4-9. The tender will close on Jan. 22 with bids valid until Jan. 27.
DME OMAN
DME Oman for March settled at $45.63 a barrel at 0830 GMT, up 27 cents. This puts DME Oman at $1.31 a barrel below Dubai swaps against a discount of $1.65 in the previous session.
MARKET NEWS
Oil traders have booked up to 20 tankers to store an estimated 40 million barrels of crude at sea, rising from 25 million barrels last week, as they soak up a stocks glut in anticipation of future profits, shipping and oil market sources said.
OPEC defended on Wednesday its decision not to intervene to halt the oil price collapse, shrugging off warnings by top energy firms that the cartel's policy could lead to a huge supply shortage as investments dry up.
Losses from lower oil exports should sap up to $300 billion from economies in the Middle East and Central Asia this year, as countries in the region adjust to falling crude prices, the International Monetary Fund said.
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