Qatar hikes June Land, Marine crude OSPs by $2.15-$2.50/b from May

Singapore — Qatar Petroleum has raised the official selling price differentials for its Land and Marine crude grades loading over June between $2.15/b and $2.50/b from May, showed a company notice seen by S&P Global Platts Wednesday.

QP set the latest OSP differential for Qatar Land crude at a discount of $5.15/b to the average of Platts Dubai and Oman crude assessments in the month of June. The OSP is up $2.15/b from the differential for May, according to the notice.

It set the OSP differential for Qatar Marine crude loading over June at a discount of $4.60/b against Dubai/Oman, which is a hike of $2.50/b from May, showed Platts records.

The June OSP hikes widened the premium for Qatar Marine over Qatar Land to 55 cents/b, after flipping into a 20 cents/b premium for the first time ever last month when QP issued its May OSPs.

The quality inversion tracks similar moves by other Middle East producers for their respective OSPs, and reflects sliding valuations for lighter sour crude grades in the Asia market.

This was the fourth set of forward looking OSP differentials issued by Qatar Petroleum since the company announced December 2019 that it would switch to a prospective pricing methodology from a retrospective method of pricing its crude.

Qatar Petroleum's forward looking crude OSPs (started Mar 2020)*:

*The final outright price for both grades will be calculated by adding the differential to the average of the Platts front-month Dubai and Oman crude assessments in the month of loading.