Dubai falls over 4% in March, April Saudi OSPs seen lower
Quantum Commodity Intelligence - The March monthly average price for benchmark Middle East Dubai retreated by over 4% versus February, according to Quantum data, posting the first monthly loss of 2023.
The Quantum March monthly average price Dubai crude was 4.4% lower versus the previous month, averaging $78.49/for May-loading barrels versus $82.10/b on April-loading crude.
On a quarterly basis Dubai averaged $80.235/b in Q1 compared to $84.845/b in Q4 and the Q1 2022 average of $96.21/b, which coincided with Russia's invasion of Ukraine
Oil markets in March were largely dominated by the banking crisis, which saw Dubai crash to a 15-month low of $70.29/v on 20 March.
Prices have since recovered as fears over the banking sector eased, while the weekend announcement from OPEC+ members on production cuts further lifted prices.
Structure
Meanwhile, the key M1/M3 Dubai cash spread, closely monitored by Saudi Aramco and other Middle East National Oil Companies (NOCs), averaged $1.65/b in March compared to $2.03/b in February, flagging a likely reduction in Official Selling Prices (OSPs) for May-loading barrels by Saudi Aramco and other regional producers.
Medium sour grades, such as Oman, Upper Zakum and Al Shaheen, were changing hands at Dubai swaps plus $1-$1.50/b during the second half of March, which are typically sold at a discount to Arab Light.
Asia cash May Brent averaged $79.30/b over the month based on the 1630 Asia close, down 5.3% from last month's average of $83.75/b as the North Sea marker was again outpaced by heavier Middle East grades.
Traders said Brent struggled under the weight of Atlantic Basin crudes competing for homes in Europe, while healthy demand for heavier barrels, particularly from China, helped to support Middle East grades.
As such, the Brent/Dubai cash spread crunched to an average of around 0.80/b, compared to February's average of $1.65/b.
US WTI averaged $73.48/b based on the 1630 Singapore May contract price, down from $77.30/b the previous month.
For a full Dubai and crude oil pricing history, visit Quantum's pricing pages.
