The sour crude complex surged to a new high driven by increased supply tightness in the West, while further increasing demand for Middle East crude grades among Asian buyers.
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S&P Global Platts assessed December cash Dubai versus same-month Dubai futures at a premium of $2.85/b at the Asian close Oct. 25, up 75 cents/b from the previous day close.
The cash/futures spread is the highest since Dec. 20, 2019, when it was assessed at a premium of $2.92/b, Platts data showed.
The tightening of supply was expected to continue, while stockpiles continued to drain the storage hub of Cushing, Oklahoma, market sources said.
The bulk of the crude draw was realized at the NYMEX delivery point of Cushing, Oklahoma, where stocks dropped 2.32 million barrels to 31.23 million barrels.
Furthermore, oil prices continued to march higher, with December cash Dubai assessed at $84.34/b, up from $82.55/b at the Asia close Oct. 22, the data showed.
Robust buy-sell activity was also reflected on the Platts Market on Close assessment process where 63 Dubai partials and five Oman partials exchanged hands.
The Dubai partials were traded with Extap, Unipec, Shell, Reliance, Mitsui, Vitol, PCHK and Lukoil on the sell side, and TotalEnergies, BP, Trafigura and Gunvor on the buy side.
Meanwhile, all five Oman partials were sold by Unipec to TotalEnergies. This brings the total count of Dubai and Oman partials traded in October to 300.
On the Platts MOC, Trafigura offered a 700,000 barrels December-loading cargo of Russia's Sokol crude.
The cargo was offered at a premium of $5.80/b to Platts front-month Dubai crude assessments until close of the MOC but saw no buying interest.
Shell declared a cargo of Upper Zakum crude to TotalEnergies upon the convergence of 20 Dubai partials.
A convergence occurs when 20 partials are traded between two counterparties, resulting in a full 500,000 barrel physical cargo being declared from the seller to the buyer.