Middle Eastern crude benchmarks Oman, Dubai and Murban advanced in the last trading day of February on Tuesday, concluding the month with firmer averaged premiums comparing to January.

Dubai’s market structure, which reflects the first- and third-month price spread, is assessed at about $2.04 a barrel this month, comparing to $1.22 in January, on the back of the anticipation of stronger demand in the region.

Light sour Murban premium is averaged at $3.30 a barrel over the Dubai quotes in February, up from $3.05 a barrel last month, underpinned by growing naphtha and gasoline margins.

SAUDI OSP PREVIEW

Top oil exporter Saudi Arabia is expected to raise its official selling prices (OSPs) for Asian buyers in April, tracking stronger physical premiums this month amid the prospect of a demand revival in China.

Saudi Aramco may increase its flagship Arab Light grade by about 40 cents in April to $2.40 a barrel over the Dubai/Oman average, according to five respondents surveyed by Reuters, following strengthened Middle East crude benchmarks.

SINGAPORE CASH DEALS

Cash Dubai’s premium to swaps gained 38 cents to $2.22 a barrel.

Vitol will deliver one April-loading Upper Zakum cargo to Mercuria following the trade. Exxonmobil will also deliver one April-loading Upper Zakum cargo to PetroChina.

NEWS

Urals crude exports to China from Russia’s Western ports rose in February month on month on lower freight costs and rising demand, Reuters sources said.

Crude oil exports and transit from Russia’s Black Sea port of Novorossiisk were suspended on Feb. 24 due to a storm and will fail to fulfil the February loading plan in full amid weather related delays, market and shipping sources said on Monday.

Russian oil pipeline monopoly Transneft said on Monday that it had started pumping oil from Kazakhstan to Germany via Poland through the Druzhba pipeline, while halting deliveries to Poland, Russian news agencies reported.
Source: Reuters