Register with us today

and in less than 60 seconds continue your access to:Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center

Enter your Email ID below and we will send you an email with your password.


  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you your password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber, to reset your password go to the Platts Market Center to reset your password.

In this list
Oil

Analysis: Middle East crude oil complex nosedives on bearish sentiment

Bunker Fuel | Oil | Crude Oil | Fuel Oil | Shipping | Marine Fuels | Storage | Tankers

Sweet opportunities remain for sour crude and heavy products

Oil

Platts Rigs and Drilling Analytical Report (RADAR)

NGL | Oil | Crude Oil | LPG | Oil Risk | Petrochemicals

Platts University New York

Oil

UK's Premier Oil launches sale of Mexican Zama field stake

Analysis: Middle East crude oil complex nosedives on bearish sentiment

Singapore — Market structure and flat prices came down significantly in the Middle East crude oil complex Wednesday, amid a general sell-off in global crude oil markets, traders told S&P Global Platts.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

At 4:30 pm Singapore time (0830 GMT), the outright price for December cash Dubai, the most prompt month trading in October, settled at $74.40/b, down 4.42% on the day from $77.84/b.

This is the largest day-on-day move in the flat price in about four months.

Previously cash Dubai M1 moved 4.55% lower on June 18 to $70.94/b.

Prices followed global crude sentiment lower, with a general bearish tune to oil markets on Wednesday, traders said.

"I think it's just a general downtrend; everything is coming off," said a Singapore-based crude oil trader.

A second trader said: "All risk off today it seems."

The plunge in price activity pulled the market structure lower across the board. The spread between cash Dubai M1 and M3 moved to a backwardation of 68 cents/b from $1.09/b Tuesday, Platts data showed at the close of business in Singapore Wednesday.

The structure had briefly dipped below $1/b earlier this month, when it was assessed at 95 cents/b on October 18, but has otherwise stayed firmly above that level since September.

It was previously lower than 68 cents/b on August 29, at 61 cents/b.

The Dubai M1-M3 structure is tracked by traders of Middle East crude grades as an indication of spot market trading sentiment. At 68 cents/b the structure remains in backwardation, implying higher demand for prompt cargoes than for future ones, but with relatively less urgency than if it was above $1/b.

DME OMAN RESISTS DOWNWARD MOVE

Despite the risk off sentiment in global crude oil benchmarks, the December Oman futures contract traded relatively higher Wednesday on the Dubai Mercantile Exchange, Platts data showed.

Oilgram News

Platts Oilgram News brings fast-breaking global petroleum and natural gas news every day covering supply and demand trends, corporate news, government actions, exploration, technology, and much more. Click on the link below and we will set you up with a free trial.

Free Trial

The DME Oman market price at 4:30 pm Singapore time (0830 GMT) was pegged at $75.42/b, just 28 cents/b lower than December ICE Brent futures at the same time.

The same spread between the two averaged $2.12/b on a year to date basis as of Wednesday, Platts data showed.

Market sources said the DME futures contract tends to experience high volatility in prices towards the tail end of each month, when buyers and sellers of physical cargoes attempt to cover their positions.

The end-month volatility caused widespread confusion across Middle East crude oil markets late last month when it traded several dollars higher than ICE Brent futures for four days running. The phenomenon was widely labeled as an extreme case of short-covering positions going into the end of the month.

The spread between DME Oman and Platts cash Oman as of 4:30 pm Singapore has also seen increased widening in the second half of this month, landing at 32 cents/b on Wednesday. It averaged 12 cents/b on a year-to-date basis, Platts data showed.

Platts assessed cash December Oman at $75.10/b on Wednesday. The Platts crude Market on Close assessment process saw two offers on December Oman partials on the day. Unipec offered a 25,000-barrel partial of Oman crude at $75.15/b as of 04:30 pm Singapore time, while Reliance's offer was standing at $75.30/b as of the close. No buying interest was seen for Oman partials on the day.

--Eesha Muneeb, eesha.muneeb@spglobal.com

--Edited by Jonathan Fox, jonathan.fox@spglobal.com