Crude MOC: Cash Dubai edges lower; spot differentials lose steam

New York — The benchmark cash Dubai's premium against Dubai futures narrowed at the Asian close March 18 while spot market differentials continued to stay pressured.

S&P Global Platts assessed May cash Dubai at a premium of 94 cents/b to the same-month Dubai futures at the 4:30 pm Singapore close on March 18, down 3 cents/b from close the previous day.

May cash Oman was assessed at a premium of $99 cents/b to same-month Dubai futures, down 2 cents/b from close the previous day.

Capped buying from Asian buyers amid large unused crude and product stocks as well as refinery turnarounds continued to halt the sour complex rally.

For lighter grades, premiums have started shrinking while medium and heavy grades trade at parity or discounts, further showing the weak sentiment, traders said.

"Market just cannot hold now [as I] think most buying interest gone now [and] we are just halfway through the cycle," said a trader with a north Asian refinery.

Reflecting the easing spot market activity, Thailand's IRPC bought via tender a 500,000 barrel cargo each of May-loading Murban crude and Banoco Arab Medium crude.

IRPC purchased the Murban crude at a premium of around 20 cents/b while the Banoco Arab Medium crude was purchased at a discount of around 30 cents/b.

Similarly, Taiwan's CPC purchased via tender 2 million barrels of May-loading Upper Zakum crude at a nominal premium of about 1-2 cents/b.

Eyes are now on the tender issued by Taiwan's Formosa Petrochemicals seeking 1 million-2 million barrels of May delivery sour crude. The tender closes March 19 with same-day validity.

The Platts Market on Close assessment process on March 18 once again saw substantial buying and selling interest with a total of 42 May Dubai partials of 25,000 barrels and six Oman partials traded.

The partials were traded with Shell, Total, P66, Vitol, Unipec, Reliance and Hengli on the sell side and Trafigura, Lukoil, Koch and PetroC hina on the buy side.