CRUDE MOC: Middle East physical crude complex flips into contango

Singapore — Middle East sour crude benchmarks Dubai and Oman saw their premiums over April Dubai futures fall to discounts at the end of the Platts Market on Close assessment process Tuesday, as the complex flipped into contango for the first time in nearly two years.

The April Dubai cash/futures spread was assessed at minus 6 cents/b at 4:30 pm in Singapore (0830 GMT), down from a premium of 5 cents/b on Monday. The Dubai structure was seen lower on March 29, 2018, at a contango of minus 35 cents/b, Platts records show.

The spread reflected market outlook for April trading, firmly entrenched in deep discounts for sour crude barrels ranging from light to medium and heavy API gravity, said market participants in Asia on Tuesday. Inquiries for cargoes have begun, but no trades were seen yet, they added.

April cash Oman also fell to a discount against April Dubai futures, at minus 2 cents/b Tuesday, compared with a premium of 9 cents/b the day before.

The Platts MOC saw eight Dubai partials change hands in Tuesday's process, bringing February's total to 49. A 500,000 barrel clip of Murban crude also traded, with BP selling on Gunvor's bid for the April cargo at a discount of 65 cents/b under the OSP.

Two offers were also seen for full-sized cargoes on Tuesday's MOC. Seller Total offered a cargo each -- 500,000 barrels in size -- of light sour Murban and Das Blend crudes. Total's offers each stood at discounts of 80 cents/b under the OSP as of 4:30 pm in Singapore (0830 GMT) Tuesday.