Dubai crude futures stable as trading for Sep-loading cargoes wraps up

Singapore — Benchmark Dubai crude futures were largely stable in mid-morning trade in Asia July 21 from the previous close as fundamentals remained little changed from the day before, with trading for September-loading cargoes expected to wrap up by the end of the week.

At 11 am Singapore time (0300 GMT), the August/September Dubai futures intermonth spread was pegged at minus 10 cents/b, inching down 1 cent/b from the previous close, while the September/October spread was pegged stable over the same period at minus 16 cents/b, S&P Global Platts data showed.

The September Brent/Dubai Exchange of Futures for Swaps was pegged at 76 cents/b, dipping 3 cents/b from the previous close, Platts data showed.

The prompt intermonth structure flipped to contango late last week after hovering in backwardation since mid-June. The structure has since weakened amid downward pressure in the spot market, as seen from the conclusion of recent deals.

Differentials for several sour crude grades have fallen in July, particularly China-centric grades, sources said. Demand from independent refineries in China was thin and inventories remained ample, they said.

Reflecting the weaker fundamentals, the cash/futures structure for benchmark Dubai crude remained at a one-month low, Platts data showed.

The Dubai crude cash/futures (M1/M3) spread was assessed at a premium of 64 cents/b at the 4:30 pm (0830 GMT) Singapore close July 20; it was last narrower at 62 cents/b on June 12, Platts data showed.