DUBAI FUTURES: Brent/Dubai spread narrows after touching 2-week high

Singapore — Benchmark Dubai crude futures' discount to ICE Brent narrowed in mid-morning trade in Asia on Wednesday after touching a two-week high earlier in the week.

At 11 am in Singapore (0300 GMT), the March Brent/Dubai Exchange Futures for Swaps spread was pegged at $2.16/b, down from $2.35/b assessed at the close of trading in Asia at 0830 GMT Tuesday.

The Brent/Dubai EFS had been assessed at a two-week high of $2.50/b on Monday.

The spread narrowed as the Brent end of the spread retreated amid selling pressure on heightened concerns that the recent flu virus in China could indirectly impact oil demand, analysts said.

Spreads for benchmark Dubai crude futures, meanwhile, were within a steady range from the previous day's assessments on Wednesday morning.

The February/March spread was pegged at 81 cents/b at 11 am, up slightly from the 79 cents/b assessed at 4:30 pm on Tuesday. The March/April spread was pegged at 82 cents/b Wednesday morning, inching up from 81 cents/b assessment at the close of trading Tuesday.

The spreads remained steady following a drop in the benchmark cash Dubai crude assessment's premium for the second consecutive day on Tuesday evening.

Buying interest for Middle East crude oil was expected to ease going into the Lunar New Year holiday weekend as Asian refiners wrap up their purchasing requirements, traders said.

The March Dubai cash premium to same-month Dubai futures was assessed at $2.05/b at the end of Tuesday's Platts Market on Close assessment process, down from $2.22/b on Monday, S&P Global Platts data showed.

The premium is at its lowest since January 2, when it was assessed at $1.89/b, according to the data.