Dubai posts weekly gains as Asian markets shrug off OPEC+ output hike  

Quantum Commodity Intelligence - Middle East crude oil finished the week ending 3 June higher, shrugging off the midweek price slump and the decision by OPEC+ to advance planned future output hikes into July and August.

Front-month Dubai cash for August delivery was assessed by Quantum on Friday at $112.10/b, versus $109.85/b for the August contract on 27 May, up 2.05%. Headline prices were marginally lower though, as then front-month July Dubai settled at $112.35/b last Friday.

August Dubai prices slumped from a weekly high of $114.85/b on Tuesday to Thursday's low of $108.95/b amid reports that OPEC+ was considering suspending Russia from its quota obligations, allowing Saudi Arabia and the UAE to ramp up output from next month.

While OPEC+ announced a combined production hike of 648,000/b, analysts said that the actual boost will amount to little more than an additional 100,000/bpd compared to if the group had stuck to a 432,000 bpd increase.

The prompt Dubai structure held firm with the key M1/M3 (Aug22/Oct22) spread valued at above +$6.50/b, up by more than $1/b on the week.

ICE Brent futures for Aug22 were pegged at $116.92/b at the Singapore close Friday (1630pm), up $2.36/b on the week, or 2%, maintaining Brent/Dubai cash spread for August at around $4.80/b.

The August Brent/Dubai EFS widened $0.65/b on the week to $11.55/b.

DME Oman futures closed the week 1.4% higher at $112.10/b for the Aug22 contract, largely trading at parity to cash Dubai.

Light sweet Murban crude trading on Abu Dhabi's IFAD exchange was up 1.77% at $115.33/b for Aug22, around $1.60/b under Brent.