Crude MOC: Sour complex steady; wide EFS supports spot demand

Benchmark cash Dubai's premium over Dubai futures was steady at the Asian close on June 17 while a widening EFS and spot activity levels continued to reflect strong fundamentals.

S&P Global Platts assessed August cash Dubai at a premium of $2.06/b over the same-month Dubai futures at the 4.30pm Singapore close on June 17, up 3 cents/b from the previous day.

August cash Oman was pegged at a premium of $2.10/b over same-month Dubai futures at the Singapore close, up 2 cents/b from the previous day.

Demand cues remained robust with Brent/Dubai Exchange for Futures Swaps continuing to widen, making crudes priced against Dubai more economically attractive for Asian refiners compared to Brent-linked grades.

Front-month Brent/Dubai Exchange for Futures Swaps was assessed at $3.82/b at the Singapore close on June 17, surging to a more than one-and-a-half-year high, according Platts data.

Meanwhile, spot trade levels also continue to reflect sustained strength in the sour crude complex.

In fresh spot trading activity, Japan's Fuji Oil was heard to have bought 1 million barrels of Murban crude at a premium of around $2.90/b over Platts front-month Dubai crude assessments, sources said.

The Platts Market on Close assessment process saw 12 August Dubai partials and one August Oman partial of 25,000 barrels traded.

The Dubai partials were traded with Unipec and Reliance on the sell side and Glencore, Trafigura, Lukoil and Gunvor on the buy side.

The Oman partial was traded with Unipec on the sell side and PetroChina on the buy side.

Unipec declared a cargo of August Upper Zakum crude to Glencore following the convergence of 20 partials in Platts cash Dubai.

A convergence occurs when 20 partials are traded between two counterparties, resulting in a full, 500,000-barrel physical cargo being declared from the seller to the buyer.