Oct cash Dubai crude closes at $71.15/b, averages $69.485/b in Aug

S&P Global Platts assessed benchmark October cash Dubai crude at $71.15/b on Aug. 31 -- the last day of trading for October-loading Middle East crude.

The October cash Dubai assessment averaged $69.485/b in August, down from an average of $72.903/b for front-month September cash Dubai in July, Platts data showed.

October cash Oman crude was also assessed at $71.15/b Aug. 31, and averaged $69.596/b in August, down from an average of $73.048/b for front-month September cash Oman in July.

In August, cash Oman's premium to cash Dubai averaged 11.1 cents/b, narrower than the 14.5 cents/b premium in July.

The Dubai cash/futures spread -- a measure of the market structure -- narrowed marginally in backwardation to average $2.22/b in August from $2.35/b in July.

Weak Chinese demand and growing inflows of arbitrage barrels into Asia weighed on the region's appetite for Middle East crude this month.

The Platts Market on Close assessment process Aug. 31 saw a total 38 trades of 25,000-barrel Dubai partials and one trade for 25,000-barrel Oman partials. This brings the total number of Dubai and Oman partials traded in August to 375.

A total 11 convergence cargoes were declared in the month, consisting of six Upper Zakum crude cargoes, three Al-Shaheen cargoes and two Dubai crude cargoes.

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.