CRUDE MOC: Middle East crude differentials hit more than 3-year high

Cash differentials for key Middle East sour crude markers rose to a more than three-year high during the Singapore Platts Market on Close assessment process March 2, following US and Israeli strikes on Iran over the weekend.

Platts, part of S&P Global Energy, assessed May cash Dubai and cash Oman at a premium of $5.91/barrel to same-month Dubai futures at market close, up $4.70/b from the front-month April spread on Feb. 27.

May cash Murban strengthened $4.32/b during the session to a premium of $6.50/b to same-month Dubai futures.

This represented the highest level for the front-month cash Dubai and cash Oman differentials since October 2022, while the cash Murban differential reached a peak not seen since November 2022.

During the MOC, 29 May Dubai partials of 25,000 barrels each were traded.

The sellers were Unipec, PetroChina, Shell, Trafigura, Shenghong and BP, while the buyers were TotalEnergies, Equinor and Mercuria.

No convergences were reached during the March 2 MOC. A convergence occurs when 20 partials are traded between two counterparties in the same direction, resulting in a full 500,000-barrel physical cargo being declared from the seller to the buyer.

The front-month May Brent-Dubai exchange of futures for swaps spread was assessed at $4.99/b at the March 2 Asian close, up $3.77/b during the day and the highest since January 2023.