Dubai Futures: Middle East crude steady as traders look to tender results for cues

Singapore — The outright price and intermonth spreads for benchmark Dubai crude futures were largely steady in mid-morning trading hours in Asia on Friday, as market participants awaited several tender results for further cues to Middle East sour crude pricing for the June cycle.

At 11 am in Singapore (0300 GMT), the June Dubai futures contract was pegged at $27.67/b, up 25 cents/b from its assessment at $27.42/b at Thursday's close in Asia.

Intermonth Dubai crude futures were a few notches higher Friday morning as well, but hovered near Thursday's assessment levels.

The May/June Dubai futures spread was pegged at minus $3.23/b at 0300 GMT Friday, up 10 cents/b from minus $3.33/b assessed on Thursday at 4:30 pm in Singapore (0830 GMT). The June/July spread climbed at a similar pace, rising 9 cents/b from Thursday's assessment to be pegged at minus $1.46/b Friday morning in Asia.

Meanwhile, the Brent/Dubai Exchange of Futures for Swaps spread was barely changed overnight. The June EFS was pegged at minus $5.35/b at 11 am in Singapore Friday, up a cent from minus $5.36/b assessed Thursday.

Market watchers in Asia were awaiting results from several Middle East sour crude tenders to gain further cues on direction as the June cycle enters its last vestiges.

China's Rongsheng, which was seeking medium sour crude grades via a recent spot tender, could have purchased June-loading cargoes of Al-Shaheen crude, initial market talk indicated Friday morning. Further details surrounding the tender award were still emerging.

Meanwhile, Thailand's PTT could have picked up a June-loading cargo of light sour crude in its recent monthly spot tender, but market participants were unsure whether this was a cargo of Abu Dhabi's Murban grade or not.

Elsewhere, crude traders in Asia reported that bids for Iraqi Basrah Light and Heavy crude cargoes for May loading were higher than $2/b against their respective OSPs. May-loading Basrah Light cargoes going into China as of late have fetched premiums ranging from $2/b to $3/b against the OSP, according to market reports.