Middle East crude complex steady as spot purchasing trickles

Singapore — Spreads for benchmark Dubai crude futures was in a steady range Tuesday morning in Asia, following a fall in the premiums for cash Dubai crude assessments at the close of trading in Asia on Monday, as spot demand for Middle East crude slows ahead of the Lunar New Year holidays.

The February/March spread was pegged at 81 cents/b at 11 am in Singapore (0300 GMT), an inch lower than the assessed 82 cents/b at 4:30 pm on Monday.

The March/April spread was pegged at 83 cents/b Tuesday morning, slightly lower than the 85 cents/b assessment at the close of trading Monday.

Premiums for benchmark cash Dubai crude assessments fell at the end of the Platts Market on Close assessment process on Monday, following the conclusion of several Middle East crude tenders.

The March Dubai cash premium to same-month Dubai futures was assessed at $2.22/b at the end of Monday's MOC, down from $2.46/b premium on Friday, S&P Global Platts data showed.

Dubai premiums fell after Japan's Fuji Oil and Thailand's PTT were reported to have concluded their tenders for Middle East crude oil.

In addition, Taiwanese refiners CPC and Formosa may not issue their monthly tenders for Middle East crude this month due to run cuts as well as availability of competitive alternative barrels from other regions, market participants said.

"This month is pretty quiet as most refineries have turnarounds from April," a trader with a North Asian refiner said, noting that Middle East cargoes trading in the current cycle would arrive in Asia in April.

Meanwhile, the March Brent/Dubai Exchange of Futures for Swaps spread narrowed to $2.44/b at 11 am in Singapore, down from the two-week high of $2.50/b assessed at the close of trading in Asia on Monday.