A widening premium of Brent-related grades rendered Middle East crude more competitive on Monday, helping reduce the discounts of Qatari al-Shaheen and Oman as demand improved from buyers across Asia.Qatari heavy sour al-Shaheen was valued at a discount of 20-30 cents to Dubai quotes, up from discounts as wide as 40 cents last week for October-loading lots. Results for Tasweeq’s tender for nine cargoes were expected on Tuesday.
Oman crude cargoes for October rebounded to as high as parity with Dubai quotes from a discount of about 20 cents on Friday, on expectations that demand from northeast Asian and Indian refiners would pick up in the absence of arbitrage crude flows from the Atlantic Basin.
The rising premium of European marker Brent over Middle Eastern Dubai was restricting the flow of West African supplies to Asia, traders said, benefiting values of Middle East grades.
Timespreads on the Dubai swaps curve continued to strengthen, narrowing the discount of September to October to 14 cents from 16 cents on Friday. This shallower contango market structure is reflective of tightening supplies.
From / Gulf Today