CRUDE MOC: Cash Dubai at one-week high against Dubai futures

Singapore — Benchmark cash Dubai rose against Dubai futures for the third consecutive day on June 25 to the highest in one week, 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 -- was assessed at a premium of $1.12/b at the 4:30 pm (0830 GMT) Singapore close on June 25, up 14 cents/b from 98 cents/b assessed the day prior.

The spread is the highest since June 18 when it was assessed at $1.31/b, Platts data showed.

Similarly, Platts cash Oman was assessed at $1.12/b against Dubai futures on June 25, up 14 cents/b from June 24 and also the highest since January 18.

The Platts Market on Close assessment process in Asia on June 25 saw a single bid for 500,000 barrel cargo of Abu Dhabi's Upper Zakum crude from western trading house Vitol and two offers for similar sized cargoes of the crude from Singapore-based EXTAP (ExxonMobil Trading Asia Pacific).

The bid, which states a loading period over August 1-31, stood at the close of the MOC process at a premium 80 cents/b to front-month cash Dubai in August, without any selling interest seen.

EXTAP's offers for the cargoes, which loads over August 1-25 and comes with bill of lading price terms, stood at the close of the MOC process at a discount of 30 cents/b to Upper Zakum's official selling price in August and a premium of $1.15/b to front-month cash Dubai in August, respectively. No buying interest was seen for the offers.

On Middle East sour crude partials, a total of three 25,000-barrel partials traded on June 25, consisting of two August Dubai partials and a single August Oman partials.

Buyer Vitol was seen purchasing the two August Dubai partials from sellers Unipec and Hengli while Total was seen purchasing one August Oman partials from Reliance.

This brings the number of partials traded in June so far to 80, consisting of 71 Dubai and nine Oman partials. No convergences have been declared as yet.

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.

For Dubai partials, the seller has the option to deliver a Dubai, Oman, Upper Zakum, Al-Shaheen or, with a quality premium, Murban cargo to the buyer.

For Oman partials, the seller has the option to deliver Oman, or, with a quality premium, a Murban cargo to the buyer.