Crude MOC: Sour crude complex rises amid supportive demand cues

Benchmark cash Dubai crude's premium to Dubai futures rose on Sept. 9 amid brightening demand cues from key buyers China and India.

November cash Dubai was assessed at a $1.515/b premium against same-month Dubai futures, increasing by 18.5 cents/b from the 4:30 pm (0830 GMT) Singapore close on Sept. 8.

November cash Oman was assessed at a premium of $1.44/b against same-month Dubai futures on Sept. 9, rising 22 cents/b, S&P Global Platts data showed.

Improving domestic refinery margins in China are inducing higher demand for crude imports, with independent refineries continuing to buy as they pin their hopes on receiving a fourth batch of crude import quotas.

"Chinese domestic market has picked up, domestic product prices have risen. Teapots are buying; those with balance quotas, they are buying," said a Singapore-based crude oil trader.

Meanwhile in India, an upcoming festive season could support crude import demand as well, driven by an expected surge in demand for gasoline and diesel, according to a trader at a South Asian refinery.

"While high product inventory levels are putting pressure on refinery runs for September... November buying should not be affected," the trader added.

The Platts Market on Close assessment process on Sept. 9 saw 10 trades for November Dubai partials.

The partials were traded by Unipec, Vitol, PetroChina and Reliance on the sell side and Glencore and Trafigura on the buy side.

This brings the total number of partials traded in September so far to 81, all for November Dubai partials.