CRUDE MOC: Dubai structure steadies as market awaits more OSPs

Singapore — The structure of benchmark Dubai crude was steady July 7 as the market looks toward the issuance of more official selling prices from Middle East producers following Saudi Aramco's hikes a day earlier.

The Dubai cash/futures spread was assessed at a premium of $1.06/b at the 4:30 pm Singapore close (0830 GMT) on July 7, edging down just 1 cent/b day on day.

The Dubai cash-futures spread was steady as average demand expectations capped any further substantial boost in the structure, which has been largely supported by the OPEC+ supply cut extensions.

Market participants noted that while the Saudi OSP hikes were widely expected, the uptick in prices has come amid a backdrop of fragile refining margins and tepid buying interest.

The OSP differentials for most of the Asia-bound crude grades are at their highest level since March, S&P Global Platts data showed.

Meanwhile, two 25,000-barrel partials traded during the Platts Market on Close assessment process on July 7. This brings the total number of partials traded in July so far to 14.

The trades on July 7 included one September Dubai partial traded between buyer Trafigura and seller Reliance, and one September Oman partial traded between buyer Total and seller Unipec.

The values at the end of the MOC reflected a wider spread between cash Dubai and cash Oman at 19 cents/b, up from 6 cents/b the day prior, Platts data showed.