CRUDE MOC: Dubai structure eases slightly, market eyes fresh cues

Singapore — The Dubai cash/futures structure eased slightly July 14, as market participants focused on fresh cues following talks of allocation cuts received by Asian refiners.

The spread, which is a key indicator of spot market sentiment for sour crude in Asia, was assessed at a premium of 1.12 cents/b at the 4:30 pm (0830 GMT) Singapore close on July 14, down 2 cents day on day.

The spread had remained largely rangebound in July, averaging $1.14/b in the month so far, S&P Global Platts data showed.

"Market conditions are still leaning towards the softer side... refinery margins are not too good and overall [OSP] prices are still expensive in my opinion," a source from a northeast Asian refinery said.

The hikes in official selling prices by the Middle Eastern crude producers have also curbed buying interest and nominations, sources said.

The extent of the volume allocation cuts also varies for refineries across different parts of Asia, with most refineries seeing just a slightly lower volume on the month, sources said.

Following volume allocations, the market is also looking towards the closure of a key Middle East crude spot tender, as well as the OPEC+ Joint Ministerial Monitoring Committee's meeting on July 15.

Qatar Petroleum for the Sale of Petroleum Products, or QPSPP, is due to close its tender offering two 500,000-barrel cargoes of Al-Shaheen crude for loading in September on July 14.

Last month, QPSPP sold two 500,000-barrel Al-Shaheen cargoes for August loading via a similar tender. The Al-Shaheen crude cargoes were last sold at discounts averaging around $1.56/b to Dubai.

Meanwhile, the Platts Market on Close assessment process saw three 25,000-barrel September Dubai partials traded on July 14, bringing the total number of partials traded in July so far to 22, Platts records showed.