Middle East crude benchmarks Oman, Dubai and Murban fell on Wednesday despite hopes of oil demand recovery from China, the world’s No.2 oil consumer.

The decrease of spot premiums came as the spread between Brent- and Dubai-linked grades narrowed to $3.65 a barrel, a level last seen a year earlier. A narrower spread would encourage Asian buyers to take more arbitrage cargoes from the West.

The tender results from Qatar Energy on its March-loading al-Shaheen, Qatar Marine and Qatar Land cargoes are still waited and would come out later this week.

SINGAPORE CASH DEALS

Cash Dubai’s premium to swaps dipped 66 cents to $0.86 a barrel.

Vitol will deliver a March-loading Upper Zakum to Trafigura and a March-loading al-Shaheen to Mercuria following the trade. Reliance will also deliver a March-loading al-Shaheen to Mercuria.
Source: Reuters