Asia crude/products: Dubai prices firm ahead of OPEC+, gasoline cracks slump

London (Quantum Commodity Intelligence) – Crude oil prices in Asia hit two-week highs Monday, as the demand outlook remained upbeat ahead of this week's OPEC+ meeting.  

Dubai cash for July delivery was assessed at $67.90/b on May 31 (1630 Singapore time), up 0.42/b from Friday's Singapore close, while DME Oman futures for July settled $68.03/b at the Asia close, up $0.31/b from Friday's close.

Quantum's monthly average price for July Dubai crude was $66.32/b, compared to June average of $62.90/b, while July DME Oman futures averaged $66.40/b compared to the June average of $63.19/b – both Middle East benchmarks at a two-year high.

However, the Dubai Jul/Aug spread narrowed further, ending the month at $0.10/b.

Cash Brent (BFOE) for July was assessed at $70.06/b, up $0.50/b from the Friday's Asian close, while the July Brent/Dubai cash spread was at $2.16/b.

Products

Gasoline cracks slumped to a two-week low as both swaps and the cash differentials for spot fell sharply on news that Malaysia would enter a two-week lockdown, China had found a small number of new cases in Guangdong and Vietnam had found a new variant.

The RON 92 cash differential fell from around $0.25/b to -$0.30 in just one session on the back of one deal, while cracks hit a two-week low of $4.67/b.

Naphtha cracks rose, supported by strong bidding in the window. No deals were heard, but the spot crack was marked at $102/mt, up $1/mt on the day.

Jet cracks continued to slump for the sixth successive day, albeit marginally, and in line with the overall bearish picture. Spot cracks were marked at $2.74/b with June at $3.21/b. One deal was heard at $0.20/b below the underlying swaps.

Diesel cracks also fell, with 10ppm cracks slipping $0.20/b on a flurry of deals that pegged spot tonnes at flat to June swaps.

Meanwhile, fuel oil cracks imporved marginally - by $0.10-0.20/mt.