Middle East crude edges up, gasoline spot cracks fall below $7/b
London, (Quantum Commodity Intelligence) - Benchmark Middle East crude oil edged higher Thursday, having hit six-week lows in the previous session, although markets remained sluggish as traders await news on the possible increase in Iranian exports.
Dubai cash for June delivery was assessed at $61.20/b on April 8 (16.30 Singapore time), up $0.53/b from Wednesday's Singapore close, while DME Oman futures for June settled $61.31/b at the Asian close, up $0.39/b.
Talks between Iran and the international community in Vienna this week regarding the country's nuclear program continues to weigh on market sentiment, with any agreement expected to lead to increased oil exports.
China has already stepped up Iranian crude imports this year, while India has also signalled its intentions to buy more crude from the Islamic Republic.
India suspended imports of Iranian crude in 2019 to comply with US sanctions.
Brent cash for June loading was marked $0.42/b higher at $62.86/b.
Products
Spot RON 92 gasoline FOB Singapore cracks fell below $7/b versus cash June Brent for the first time in a week as selling in the spot market took prices down further than crude.
Two 50,000-barrel deals were heard at $69.40/b, leaving the premium to May swaps down $0.10/b on the day at $0.50/b. April swaps were marked at $69.35/b. RON 95 FOB Singapore was assessed $2.20/b higher.
Spot naphtha CIF Japan cracks continued to slide and were marked at $103/mt. No deals were heard, but swaps were valued at flat on the day, failing to follow crude higher. April was marked at $558/mt with May at $555/mt.
Diesel 10ppm FOB Singapore spot cracks were flat on the day at $4.11/b as distillates tracked crude higher.
Three physical deals were heard at flat to April swaps or the underlying loading swaps strip. Spot was marked at $66.97/b, April at $66.94/b and May at $67.01/b.
In the jet kero market, no deals were heard and the spot was marked at a $0.60/b discount to the underlying swaps curve.
With the swaps rising more than crude in anticipation of rising air traffic, spot cracks improved slightly to $1.94/b versus June cash Brent.
April swaps were marked at $64.50/b, May at $64.80/b and spot at $64.05/b.
High sulfur fuel oil prices were flat on the day with 180cst valued at $358.50/mt and the 380cst at a $7.50/mt discount indicating higher premiums for viscosity.
For 0.5% marine fuel, prices rose more in line with diesel, climbing $4/mt to $465/mt - a $114/mt spread over the 380cst.