CRUDE MOC: Bullish sentiment lifts Dubai structure to 4-month high

New York — Bullish sentiment for medium, heavy grades in the Middle East sour crude market has lifted the Dubai structure to its highest in four months, S&P Global Platts data showed.

The Dubai crude cash/futures (M1/M3) spread -- a key indicator of spot market sentiment for sour crude in Asia -- rose for the third consecutive day to be assessed at $1.02/b at the 4:30 pm (0830 GMT) Singapore close on June 17. That was up 25 cents/b day on day to the highest since $1.92/b on January 31.

Similarly, Platts cash Oman was assessed at $1.08/b against Dubai futures on June 17, up 31 cents/b to the highest since January 31.

Medium heavy grades were lifted by talk that Qatar's Al-Shaheen crude oil tender, which closed June 16 but will remain valid until late June 17, was discussed at premiums around the mid-high $1s/b against Platts Dubai crude assessment, FOB.

In comparison, July-loading Al-Shaheen crude cargoes were sold at discounts averaging around $2.70/b to Dubai in a similar tender last month.

"It seems market is more bullish on [the] medium heavy [grades]," a crude trader with a North Asian refiner said.

Additionally, a July-loading cargo of Basrah Heavy crude could have traded at a strong premium against the grade's official selling prices, sources said.

The medium, heavy complex has risen this week following the allocation of July barrels, with Asian refiners indicating cuts of up to 20% for Saudi barrels and up to 50% for Iraqi barrels from their contractual levels.

In the Platts Market on Close assessment process, five partials of 25,000 barrels traded on June 17, consisting of four August Dubai partials and one August Oman partial.

That meant 57 partials have traded in June so far, consisting of 51 Dubai and six Oman partials. No convergences have been declared yet.