Dubai futures intermonth spreads stable as market awaits fresh cues

Singapore — Benchmark Dubai crude futures were little changed in mid-morning trade in Asia Sept. 2 from the previous session, with intermonth spreads trading at rangebound levels as market participants awaited fresh cues, including the release of monthly Middle East official selling prices.

At 11 am in Singapore (0300 GMT), the October/November Dubai crude futures spread was pegged at 12 cents/b in contango, unchanged from the assessed level at the 4:30 pm (0830 GMT) Asian market close on Sept. 1, S&P Global Platts data showed.

The November/December spread was pegged at 16 cents/b in contango, down 1 cent from the 15 cents/b in contango assessed at the previous Asian close.

The market was relatively calm Sept. 2 as participants awaited the release of fresh Middle East OSPs before kicking off spot trade activity for November-loading cargoes.

Tighter supply of Abu Dhabi crude had propped up the structure earlier in the week, but lackluster refining margins and uncertainty over demand recovery could cap further increases, traders said.

Meanwhile, November cash Dubai crude was assessed at 29.5 cents/b under same-month Dubai futures on Sept.1, the first trading day for November-loading cargoes.

The spread, a key indicator of spot market sentiment for sour crude in Asia, was down from the 14 cent/b discount assessed on Aug. 31 but higher than the 62 cent/b discount averaged over August, Platts data showed.

Key Middle Eastern producers, including Saudi Aramco, Abu Dhabi National Oil Company and Qatar Petroleum, are expected to release their October OSPs in the coming days.