Middle East crude eases to six-week lows, cracks stable
London, UAE (Quantum Commodity Intelligence) – Benchmark Middle East crude oil prices hit six-week lows Wednesday, as demand growth concerns, increased OPEC+ production and potential lifting or Iranian restrictions continued to weigh on sentiment.
Dubai cash for June delivery was assessed at $60.85/b on April 7 (16.30 Singapore time), down $0.53/b from Tuesday's Singapore close, while DME Oman futures for June settled $60.92/b at the Asian close, down $0.49/b.
Both markets were the lowest since February 19.
China has called for an easing of sanctions of Iran, following talks in Vienna.
Analysts and ship trackers say that Iranian exports have already edged towards 1 million barrels per day, largely in breach of sanctions, but any nuclear deal is expected to legitimize current volumes and could open the door to discussions on further increases.
Brent cash was valued down $0.80/b at $62.44/b by 16:30 Singapore time.
Products
Good spot demand for gasoline was seen in the cash markets with three trades executed with a further three 10ppm diesel heard and at least one naphtha.
The spread between 92 RON and 95 RON widened with a trade for 92 RON heard at $69.50/b and two 95 RON deals - one at $69.50/b and another at a $0.20/b discount to underlying swaps. Spot cracks remained above $7/b.
In the naphtha market, one deal was heard with a H1 June parcel of 25,000 mt heard changing hands at $564/mt CFR Japan. Cracks to cash Brent were stable.
Liquidity in the diesel spot markets was once again robust, with four 150,000-barrel 10ppm deals heard roughly at parity to April swaps or a slight premium.
Spot cracks improved marginally to above $4/b for the first time in weeks.
The spot jet kero assessment was seen at a $0.60-discount to the underlying swaps market, with April swaps falling $0.60/b on the day to $63.75/b. Cash was valued at $63.31/b.
High sulfur fuel oil prices broadly fell in line with crude, while lower sulfur marine fuel cracks rose marginally to $10.24/b versus Brent. On a cash basis HSFO 180cst fell $5.5/mt to $358/mt, 380st fell $4.25/mt to $351/mt and marine fuel fell $5/mt to $461/mt.