Brent/Dubai crude spread narrows to below $2/b as Brent retreat outpaces Dubai

Singapore — Benchmark Dubai crude futures' discount to ICE Brent continues to ease for the third consecutive day in mid-morning trading hours in Asia on Thursday to its lowest in over a week at below $2/b, S&P Global Platts data shows.

At 11 am in Singapore (0300 GMT), the March Brent/Dubai Exchange of Futures for Swaps spread was pegged at $1.95/b, down from $2.06/b which was assessed at the close of trading in Asia (0830 GMT) Wednesday.

The Brent/Dubai EFS had began its southward trajectory Tuesday after peaking at a two-week high of $2.50/b assessed at the close of trading in Asia on Monday, Platts data shows.

The spread narrowed as Brent retreated ahead of Dubai amid concerns of slower jet fuel demand on the back of the recent rise in coronavirus-related cases and deaths, analysts said.

Spreads for benchmark Dubai crude futures remained within a steady range from the previous day's assessments on Thursday morning following a drop in the previous day's benchmark cash Dubai crude assessments.

The February/March spread was pegged at 83 cents/b on Thursday morning, marginally below the 84 cents/b assessment at 4:30 pm in Singapore on Wednesday.

The March/April spread was pegged at 81 cents/b Thursday morning, also slightly lower than the 83 cents/b assessment at the close of trading Wednesday.

The benchmark cash Dubai crude assessments premium fell for the third consecutive day on Wednesday evening as Asian refiners concluded their buying requirements ahead of the Lunar New Year holidays.

The March Dubai cash premium to same-month Dubai futures was assessed at $2.01/b at the end of Platts Market on Close assessment process on Wednesday, down from the $2.05/b premium on Tuesday.

Traders expect trading to slow as Asian markets begin to shut for the Lunar New Year holidays this weekend.