CRUDE MOC: Sour complex hits over seven-month low amid slowing activity

The sour crude complex fell sharply at the Asian close Dec. 28, hitting a more than seven-month low amid slowing spot market activity.

S&P Global Platts assessed February cash Dubai versus same-month Dubai futures at a premium of 74 cents/b Dec. 28, down 49 cents/b from Dec. 24.

The front-month Dubai cash/futures spread was last lower at 50 cents/b April 30, Platts data showed.

February cash Oman was also assessed at a more than seven-month low of 74 cents/b premium Dec. 28, down 49 cents/b from Dec. 24. The premium was last lower at 54 cents/b at the Asian close April 30.

The sour complex fell as most trading was already completed for February-loading cargoes, according to market sources.

Market participants are gauging fundamentals for the month ahead, with the focus shifting to the March-loading trading cycle.

Demand from most Asian economics is expected to be stable despite the threat of rising omicron coronavirus variant cases, as countries attempt to minimize mobility curbs, sources said.

"Omicron cases have been rising in the last few weeks but demand is still ok, nobody is locking down [in Asia]," said a Singapore based crude oil trader, adding that China was an exception.

The demand outlook for China was cautious, as the country continues to enforce measures to stamp out COVID-19 that could hurt demand.

Sources said the spring refinery turnaround season could also dampen demand from Asian end-users.

A total of 11 Dubai partials and two Oman partials traded on the Platts Market on Close assessment process, bringing the total number of December traded partials to 240.

The Dubai partials were traded with Vitol, Unipec and Reliance on the sell side, and TotalEnergies and Gunvor on the buy side.

The Oman partials were traded with Unipec on the sell side and TotalEnergies on the buy side.

A convergence were also declared on the MOC process Dec. 28.

Unipec declared a cargo of Oman crude to TotalEnergies upon the convergence of 20 Dubai partials.

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.