Dubai crude futures spreads strengthen amid spot buying interest, supply concerns

Singapore — Benchmark Dubai crude futures intermonth spreads rose in mid-morning trade in Asia Monday on the emergence of spot buying interest for Middle East crudes and concerns over supply disruptions in the region.

The February/March intermonth spread for Dubai crude futures was pegged at 84 cents/b at 11 am in Singapore (0300 GMT), up from an assessed 77 cents/b at 4:30 pm on Friday.

The March/April spread was pegged at 85 cents/b, up from 82 cents/b assessed at the close of trading Friday.

The intermonth spreads strengthened as several Asian refiners issued spot tenders seeking Middle East crude grades.

Japan's Fuji Oil issued a spot tender seeking medium sour crude grades on Friday with same-day close. The result was not immediately known.

The refiner may also emerge to buy light sour grades to fulfill its refinery slate requirements for the month, market participants said.

Market participants were also awaiting the outcome of Thailand's PTT tender seeking cargoes of Middle East sour crude grades loading in March that closed at the end of last week.

This spot demand comes at a time when there are concerns that Libya and Iraq could face supply disruptions.

Meanwhile, the March Brent/Dubai Exchange Futures for Swaps spread widened mid-morning Monday to be pegged at $2.39/b at 11 am in Singapore, up from an assessed $2.35/b at Friday's close trading in Asia.

The EFS had been widening since hitting a nine-month low of $1.79/b at the close of trading in Asia on January 13, S&P Global Platts data showed.