CRUDE MOC: Cash Dubai eases against futures ahead of key tender result

New York — Benchmark cash Dubai's spread to Dubai futures, a key indicator of spot market sentiment for sour crude in Asia, eased on Oct. 15 ahead of the outcome of Qatar's Al-Shaheen crude oil tender later in the day.

December cash Dubai crude was assessed at a discount of 59 cents/b to same-month Dubai futures at the 4:30 pm Singapore time (0830 GMT) close on Oct. 15, down 5 cents/b from a two-week high on Oct. 14, S&P Global Platts data showed.

Similarly, Platts cash Oman was also assessed lower against Dubai futures at minus 38 cents/b on Oct. 15, down 4 cents/b.

Physical cash/futures spreads eased ahead of the outcome of the monthly Al-Shaheen crude oil tender from Qatar Petroleum for the Sale of Petroleum Products (QPSPP), which was expected to be concluded on Oct. 15.

The tender could give fresh cues on demand from Asian refiners after China's Rongsheng purchased 8 million barrels of Middle East crude earlier in the week, traders said.

"Demand is still not so well [for light sour crude as] Europe has so many [unsold] cargoes [which can be] even cheaper than Murban if freight is good," a North Asian crude oil trader said.

Meanwhile, the Platts Market on Close assessment process in Asia on Oct. 15 saw 17 December Dubai partials, each 25,000 barrels in size, traded.

Western trading house Mercuria and oil company Shell were the buyers of the partials while Unipec and PetroChina were the sellers.

They brought the total number of partials traded on the MOC in October to 51, comprising 49 Dubai partials and 2 Oman partials. No convergences have been declared.

In addition, Shell bid for 500,000 barrels of Upper Zakum crude, for loading Dec. 1-31 in the cargo MOC, with the bid standing at a discount of 65 cents/b to Platts cash Dubai crude assessment, on an FOB basis, at the MOC close.

Shell also offered a 500,000 barrel cargo of Murban crude, for loading Dec. 1-25 in the cargo MOC on Oct. 13. That offer stood at a premium of 23 cents/b to Murban's official selling price, on FOB basis, with no buying interest seen.