Dubai prices move higher, gasoline, naphtha, jet cracks soar
London (Quantum Commodity Intelligence) – Middle East crude oil prices moved comfortably higher in outright price terms Friday, following global benchmarks which have been in a firm uptrend since this week's EIA inventory report revealed a sharp drawdown in US distillate stock.
But lingering concerns over the demand slowdown from India and the market's ability to immediately absorb the OPEC+ production hikes starting in May continue to linger, with the prompt Dubai structure relatively soft.
Dubai cash for June delivery was assessed at $65.05/b on April 29 (16.30 Singapore time), up $1.50/b from Wednesday's Singapore close, although the June/July spread widened slightly, assessed at +$0.10/b vs parity the previous day.
DME Oman futures for June settled $64.96/b at the Asian close, up $0.25/b on the day.
Cash Brent (BFOE) for June was assessed at $67.33/b, up $1.39/b versus Wednesday's Singapore close, as the Brent/Dubai cash spread eroded further to $2.68/b.
Products
Gasoline and naphtha May swap cracks versus July cash Brent rose to their highest level in more than a week after Singapore stocks of light distillates fell by more than 1 million barrels for the second successive week and US stocks showed a more modest build than analysts were expecting.
Naphtha cracks now stand at $93.81/mt, according to Quantum data, a three week high on lower stocks in Singapore. No physical deals were heard and cash differentials to swaps remained unchanged.
Gasoline cracks rose $0.53/b to $6.85/b with Q2 cracks rising a more modest $0.38/b to $6.26/b.
Four physical spot deals were heard - two each for 92 RON and 95 RON spec - indicating a much more modest rise for near-term barrels.
92 RON traded at $74.18/b and $74.20/b for loading between May 16-23, while 95 RON traded at $76.18/b and $76.38/b for loading between May 18-29.
However, Wednesday's EIA report showing a big draw in distillates of 3.3 million barrels was shrugged off by the diesel market with 10ppm cracks broadly flat on the day. No deals were heard.
Jet kero, however, rallied hard, with the May swap versus July cash Brent rising to $3.43/b - it's highest in weeks as the draw in the US offset any lingering concerns about interntaional travel demand.
No physical deals were heard and the spot market was assessed at a cash differential of -$0.20.
In the residual markets, marine fuel 0.5% sulfur cracks fell to their lowest versus Dubai crude in more than three weeks at $12.52/mt.
No deals were heard for marine fuel, but 380 cst was heard traded at a $0.50/mt premium to the underlying swaps curve. That left the crack versus Dubai broadly unchanged at -$3.76/b.