Crude MOC: Cash Dubai, Oman benchmarks narrow with eyes on next cycle

Singapore — Benchmark cash Dubai fell at the Asian close Jan. 27 on the back of negligible demand seen for March-loading cargoes.

S&P Global Platts assessed March cash Dubai at a premium of 45 cents/b to the same-month Dubai futures, down 11 cents/b from the Jan. 26 close.

Similarly, March cash Oman was valued at a premium of 45 cents/b to front-month Dubai futures, down 14 cents/b from the previous day.

Market focus has shifted to the next cycle for April-loading cargoes, with expectations of tepid demand as key Asian economies continue to deal with COVID-19 outbreaks and on refinery turnarounds.

With most purchasing having been completed for March-loading cargoes, traders expected limited activity except for last-minute buying by Asian refiners.

"The market has been quiet this week and not sure if there is any leftover demand that we may see in the last few days," said a trader in Singapore.

Shell declared a March-loading cargo of Oman crude to Total on convergence of 20 partials of cash Dubai. This was the first convergence declared in January so far.

A convergence occurs when 20 partials are traded between two counterparties, resulting in a full, 500,000-barrel physical cargo being declared from the seller to the buyer.

South Korean refiner GS Caltex offered 500,000 barrels of Abu Dhabi Murban crude in the Platts Market on Close assessment process, loading from FOB Fujrairah/Jebel Dhana for March 1-26 basis bill of lading month pricing. GS Caltex lowered the offer from official selling price plus 10 cents to OSP minus 1 cent at the end of the MOC process without attracting any demand.

Exxon offered 500,000 barrels of Abu Dhabi Upper Zakum crude in the MOC, loading from FOB Zirku Island for March 1-25 basis bill of lading month pricing. Exxon lowered the offer to front-month Dubai plus 45 cents from front-month Dubai plus 60 cents at the end of the MOC, without attracting any demand.

The MOC on Jan. 27 saw eight 25,000-barrel Dubai partials traded.

The Dubai partials were traded with Shell and Reliance on the sell side and Total, Lukoil and PetroChina on the buy side.