CRUDE MOC: Middle East crude ticks up ahead of OPEC+ dialogue

Singapore — Differentials for the benchmark cash Dubai and Oman crude assessments rose at the end of the Platts Market on Close assessment process Thursday in Asia, pricing in a degree of optimism if the OPEC+ coalition agrees to substantial production cuts at the conclusion of talks Thursday.

Despite Thursday's rise, the Middle East sour crude benchmarks remain in deeply negative territory relative to June Dubai futures, as overall market sentiment for crude in Asia is expected to stay suppressed over the June trading cycle, said traders.

There is "huge oversupply and continued weak differentials," said one trader, adding that inquiries for June loading Middle East crude cargoes were practically non-existent.

The June Dubai cash/futures spread has averaged minus $9.03/b to date in April, down from minus $3.11/b over March, S&P Global Platts data showed Thursday.

The Platts MOC for Middle East crude saw a total of five partials change hands Thursday, three for Dubai and two for Oman. This brings the total number of partials traded so far this month to 29, out of which 23 are Dubai and six are Oman partials.

Meanwhile, the OPEC+ webinar summit is scheduled to start at 1400 GMT Thursday, followed by a G20 meeting on Friday led by Saudi Arabia, which holds the G20's rotating presidency this year.

Official selling prices from producers in the Persian Gulf are expected shortly after the conclusion of the meeting.

Crude buyers in Asia expect heavy cuts to OSPs from producers such as Saudi Aramco, Kuwait Petroleum and others for May loading cargoes, they told Platts.

"We need to see a cut back in production as spoken about by producers and in Asia we need to see the big OSP cuts as well," a trader said Thursday.