Asian oil prices continue rally
London (Quantum Commodity Intelligence) – Middle East crude oil prices maintained the upwards momentum Wednesday, gaining around $1/b on increasing optimism that the global market will comfortably absorb any additional barrels.
Dubai cash for June delivery was assessed at $62.54/b on April 14 (16.30 Singapore time), up $0.99/b from Tuesday's Singapore close, while DME Oman futures for June settled $62.70/b at the Asian close, up $0.95b.
Middle East spot crude markets have started to pick up but traders are waiting for the Qatari and Iraqi tender awards to gauge market direction.
Cash Brent (BFOE) strengthened $0.93/b to $64.55/b versus Tuesday's Singapore close, while the June Brent/Dubai EFS held above $3/b for the third consecutive day.
Products
Five physical deals were heard pushing spot gasoline cracks higher, with RON 92 FOB Singapore trading at $71.10/b for May 4-8 loading and $69.88/b for later dates.
With spot assessed at $71.10/b, the spot crack versus June cash Brent rose $0.40/b to $6.95/b.
In the naphtha nmarket one cargo spread was heard with 1H June v 2H June spread at $3/mt. The rise in swaps lagged that in crude and the spot crack versus June Brent fell for the fifth day in a row to $91.35/mt.
No deals were heard and the spot value to the underlying swap for 10ppm diesel was carried forward at -$0.19, leaving the cash 15-30 day loading assessment mirroring the hike in balmo swaps.
Spot was marked at $68.40/b FOB Singapore, up $1.15/b with 500ppm and 0.25% suflur diesel cargoes for loading in Singapore rising accordingly. The spot crack was assessed at $3.85/b, up $0.22/b on the day.
The spot jet kero crack rose to its highest level in more than a month, with swaps surging $1.50/b on the day on the hopes of rising demand for international travel.
No spot deals were heard and the cash was marked at a $0.60/b discount to the underlying swaps - in line with the last heard deals.
The spot flat price was marked at $66.08/b, up $1.48/b on the day.
Fuel prices firmed relative to Brent with four deals heard in the physical market at a $1/mt premium to the underlying swaps curve for 380cst FOB Singapore and 0.5% Marine Fuel at a $1.25/mt premium.
On a flat price basis that equated to $368/mt FOB Singapore for 380cst, up $2.50/mt on the day, and $471/mt, down $1.50/mt on the day. Marine Fuel rose $9.5/mt on the day to $482/mt.