CRUDE MOC: Possibility of ADNOC crude cuts spurs buyers to market

The possibility of production cuts from Abu Dhabi, the UAE's largest crude producer, for May and June loading cargoes spurred some buyers to emerge from the sidelines to procure cargoes Tuesday.

In the S&P Global Platts Market on Close assessment process, Shell was seen bidding for a full-sized cargo of the emirate's Upper Zakum crude, a common feedstock grade for refineries in Asia.

Shell's bid rose several notches above previously assessed values of Upper Zakum, to stand at a small discount of 10 cents/b to the June official selling price by the end of the MOC process in Asia on Tuesday.

The bid, for a 500,000 barrel cargo, loading June 1-27, did not receive any selling interest in the MOC, which ended at 4:30 pm Singapore time (0830 GMT).

Other spot market bids for Abu Dhabi crudes rose in a similar fashion Tuesday, as traders wait on Abu Dhabi National Oil Company to finalize the monthly process of confirming crude volumes for term lifters.

Bids for Murban and Das Blend, which have languished at discounts of around $2/b to their OSPs so far in April, rose higher this week, crude traders told Platts on Tuesday.

WTI FLIP TRIGGERS PRICE SLIDE

Outright prices ticked lower meanwhile, after oil markets witnessed US crude futures benchmark WTI fall into negative numbers for the very first time. May NYMEX WTI, which expires later Tuesday, saw an unprecedented negative settle on Monday, and maintained the flip through Asian trading hours on Tuesday.

Oil prices traced lower Tuesday as the phenomenon triggered a degree of gloom across markets.

June cash Dubai was assessed at $17.40/b at Tuesday's 4:30 pm close in Singapore, the contract's lowest since it was assessed at $16.80/b on December 13, 2001, according to Platts records.

June cash Oman fell a similar amount Tuesday, with the contract assessed at $17.40/b at the Asian close. The contract's previous low was also on December 13, 2001, when it was assessed at $16.91/b, Platts records showed.