Asia Crude Prices Remain Steady

The October Brent/Dubai narrowed into $1.35/$1.47 from $1.60/$1.65 on Wednesday, while November was assessed at $1.50/$1.58 from a day-earlier $1.57/$1.68. The near-month arbitage narrowed owing to an overnight surge in Dubai values, where the Oct/Nov intermonth spread has ballooned out to 53/60 cents from 35/45 cents.

Traders estimated up to 12 wet October Dubai cargoes have been placed with end users, leaving 4/5 cargoes on the shelf. The Indian Oil Corp (IOC) tendered last week to buy one million barrels of October crude. The Brent/Dubai has tendered higher in recent weeks limiting the potential for incremental barrels of West African crude being tendered beyond the usual cargoes that India takes. The award is expected late today.

 

But in addition, traders said there were a number of shorts in the October Dubai paper market which added to the squeeze on Dubai paper. A flurry of Dubai intermonth deals were done overnight with Oct/Nov trading at 49 and 50 cents.

Paper Tapis rose with higher Brent and Nymex values. Sept Tapis was assessed at $20.65/$20.85, up 20 cents on the day. Oman cargoes were traded at MPM plus 2.5 cents, plus 2.5 cents and plus two cents, while three Qatar Marine barrels were exchanged at QGPC plus seven cents to plus 10.5 cents.

A partial Qatar Land cargo was acquired at QGPC minus nine cents by a European major, which then added it to a full cargo to sell 7,40,000 barrels to S Korea.