SINGAPORE: DME Oman's discount to Dubai widened in the Middle East crude market on Wednesday as trade for May-loading cargoes slowed, while traders eyed the results of a tender issued by a Taiwanese buyer for price direction.
CPC Corp closed on Wednesday its monthly tender to buy sour grades for May arrival. The Taiwanese refiner became a big buyer of spot grades this year after it reduced term liftings ahead of an impending closure of one of its refineries.
Spot premium for Das strengthened following a bid from Shell on the window at 55 cents a barrel to its OSP. The grade was last traded at a premium of 40 cents.
Traders are also waiting for more Russian ESPO sell tenders. Last week, Surgutneftegaz sold two cargoes via tender at the lowest premiums since February, traders said, likely due to the prompt timing of the cargoes.
Statoil bought a cargo for April 30-May 5 loading at $1.90 a barrel above Dubai quotes and Shell bought a May 4-9 cargo at a premium of $2.50, they said. The deals could not be independently verified.
Tasweeq is due to award later on Wednesday its monthly tender to sell condensate for May-loading. Prior to the tender, deodorised field condensate (DFC) was sold at about $2 a barrel above Dubai quotes, steady from the previous month, a trader said.
DME OMAN
DME Oman for May settled at $51.37 a barrel, down 47 cents, at 0830 GMT. This puts DME Oman at 74 cents a barrel below Dubai swaps, against a discount of 50 cents in the previous session.
MARKET NEWS
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