CRUDE MOC: Al-Shaheen crude cargo declared in Platts MOC Thursday

Singapore — A cargo of Al-Shaheen crude was declared on a convergence of Dubai partials in the Platts Market on Close assessment process for Middle East crude on Thursday, also being the first convergence for the month of February.

France's Total declared the clip of 500,000 barrels medium heavy crude to Russia's Lukoil, after selling its 20th partial of April Dubai crude to Lukoil at an outright price of $56.90/b.

The convergence is the first for Dubai partials this month, and the first Al-Shaheen declaration since September 2019, according to Platts records. Then, Unipec had declared a November loading cargo of the Qatari grade to Shell following a similar convergence in Dubai partials on the MOC.

Thursday's convergence followed four partials trades during the MOC, bringing the month's total to 80 so far.

Under the partials trading mechanism, the seller declares a full 500,000 barrel cargo to the buyer after 20 partials have been traded for the same loading month between the two companies.

For Dubai partials, the seller has the option to deliver a Dubai, Oman, Upper Zakum, Al-Shaheen or, with a quality premium, Murban cargo to the buyer.

Partials trading in the MOC also demonstrated further discounts for the Middle East crude market, with the April Dubai cash/futures structure falling to minus 44 cents/b contango at the close on Thursday.

On Wednesday, the spread -- often tracked as a proxy of sour crude sentiment in Asia -- was assessed at minus 31 cents/b at the 0830 GMT close in the region.

Cargo bids and offers also continued to be shown in the MOC, reflective of bearish spot market sentiment. Market participants, however, pointed to a slight turnaround in light sour grade discounts by Thursday.

Total stood at a discount of 80 cents/b under the OSP for a Murban cargo offer Thursday, with April 1-25 loading and B/L Month Pricing terms.

Meanwhile, Japanese trader Mitsui bid for a 500,000 barrel clip of April loading Upper Zakum on a Dubai pricing basis. Mitsui's bid remained standing at a discount of 30 cents/b under Dubai as of 4:30 pm in Singapore (0830 GMT), the end of the MOC.

Neither of the cargoes traded in Thursday's process.