Middle East crude prices stagnant, light end cracks fall again
London, UAE (Quantum Commodity Intelligence) – Benchmark Middle East crude oil prices softened Friday, with Dubai and Oman hovering around six-week lows as demand recovery concerns and increased production from May weighed on sentiment.
Dubai cash for June delivery was assessed at $60.90/b on April 9 (16.30 Singapore time), down $0.30/b from Thursday's Singapore close, while DME Oman futures for June settled $61.07/b at the Asian close, down $0.24/b.
On a weekly basis, Middle East prices were down around $1/b with crude markets relatively stagnant over the week.
Traders said spot buying for June has been slow so far with the market waiting for Saudi allocations.
However, Indian refiners have been busy buying West African crudes, looking to diversify supplies.
Products
Spot gasoline cracks versus June cash Brent fell for the third straight day, leaving the crack down 10% on the week at $6.31/b as the pandemic continued to force European countries in to tougher lockdowns.
Two physical cargoes of 92 RON were heard at $69.10/b and $69.30/b FOB Singapore, leaving the cash market at a $0.68/b-discount to May swaps versus $0.50/b on Thursday.
Spot was assessed at $69.10/b, April swaps at $69.37/b and May at $68.88/b. 95 RON was kept at a $2.20/b premium.
Naphtha spot cracks versus dated Brent June closed Friday just above $100/mt, down almost $4/mt on the week.
A time spread deal was heard at $4.50/mt for 1H May v 2H May, indicating a steep backwardation in the curve. Spot cargoes (mid-June loading) were marked at a $7/mt discount to June swaps.
Similar to light ends, distillate cracks fell back, with swaps marked at a greater fall on the day than crude.
For 10ppm diesel April swaps were seen at $66.72/b FOB Singapore with a $0.10/b contango to May.
The cash, which was thinly traded, was still seen at flat to the underlying swaps, leaving the spot crack at $3.91/b versus June Brent, down $0.20/b on the day. 500ppm gasoil was marked at a $1.15/b discount to the 10ppm.
Jet kero cracks were down $0.17/b on the day at $1.77/b FOB Singapore.
The cash remained marked at $0.60/b discount to the underlying swaps, although no physical deals were heard. April swaps were seen at $64.21/b with May at $64.56/b.
High sulfur fuel oil fell 1% ($3-3.50/mt) on the day, with marine fuel stabilising alongside diesel. 380cst was seen flat to underlying swaps at $347.50/mt, with 180cst $7.70/mt higher at $355.20/mt - and a $1.50/mt premium to the swaps, unchanged on the day.
Marine fuel was marked at flat to April swaps at $466.25/mt.