Cash Dubai, Oman benchmarks surge on Asian demand optimism

Singapore — Benchmark cash Dubai crude assessment rose at the Asian close Nov. 16 on hopes of firm Asian demand.

S&P Global Platts assessed January cash Dubai at a premium of 39 cents/b to the same-month Dubai futures, up 4.5 cents/b on the day to the highest since July 22 when it was at a 59 cents/b premium, S&P Global Platts data showed.

The January cash Oman saw a healthier rise of 16 cents/b on the day to 74 cents/b at the Asian close Nov. 16. This is the highest since July 22 when it was assessed at a 78 cents/b premium.

The rally in benchmark indicators had been largely attributed to the optimism of increased demand from Asia.

The Platts Market on Close assessment process on Nov. 16 saw one 25,000-barrel Dubai partial exchanging hands between oil major Shell and China's Unipec.

This brings the total number of partials traded this month to 30, consisting of 27 January Dubai partials and 3 January Oman partials.

The MOC assessment process also saw bids from Shell for full cargoes of 500,000 barrels each of Abu Dhabi's Upper Zakum crude.

Shell's bids for the cargoes, for loading over Jan. 1-31, stood at the close of the MOC at front month cash Dubai plus 40 cents/b and official selling price of Upper Zakum plus 35 cents/b, with no selling interest seen for either bids.