CRUDE MOC: Platts Dec cash Dubai crude averages $40.661/b in Oct

Singapore — The S&P Global Platts cash assessment for front-month December cash Dubai crude settled at $37.15/b on Oct. 30, the last day for the December-loading trading cycle.

For the whole of October, the front-month cash Dubai assessment averaged $40.661/b, down 83 cents/b from September, S&P Global Platts data showed.

December cash Oman crude settled at $37.40/b. The Oman assessment averaged $40.981/b for October, down 58 cents/b from September.

The discount of December cash Dubai to the Oman assessment in October widened month on month. The discount averaged 31 cents/b in October, widening from 7 cents/b seen in September, Platts data showed.

The Dubai cash-futures (M1-M3) spread -- closely tracked by Middle East crude traders for cues about spot market sentiment -- in October dropped month on month.

The Dubai M1-M3 spread averaged minus 67 cents/b in October, widening 14 cents/b from September, Platts data showed.

One convergence cargo declared

During the Platts Market on Close assessment process on Oct. 30, there were 68 trades for 25,000-barrel partials, comprising 63 December Dubai partials and five December Oman partials.

A total of 154 December partials traded on the Platts MOC process in October, consisting of 147 Dubai partials and seven Oman partials.

One convergence cargo was declared during the MOC on Oct. 30. Unipec declared a Dubai crude cargo to Gunvor upon convergence of 20 Dubai partials.

This brings the total number of cargo convergences in October to two. The earlier convergence saw Unipec declaring an Al-Shaheen crude cargo to Mercuria on Oct. 19.

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. China's Unipec declared a cargo of Oman crude to Total upon convergence of 20 Oman partials.