Middle East crude softens on demand growth fears ahead of OPEC+ meeting
Dubai, UAE (Quantum Commodity Intelligence) - Middle East crude oil edged lower Wednesday, following OPEC+ lowering its demand growth forecast by 300,000 barrels per day in 2021, reflecting concerns over the sluggish pace of the demand recovery.
The OPEC+ producer group, which meets virtually April 1, said it expects oil demand to grow 5.6 million b/d, compared to its previous forecast of 5.9 million b/d. OPEC+ also hiked its 2021 global supply forecast by 200,000 b/d to 1.6 million b/d.
Dubai cash for May delivery was assessed at $63.30 per barrel on March 31 (16.30 Singapore time), down $0.56/b from Tuesday's Singapore close, while DME Oman futures for May were $0.30/b lower at $63.18/b.
Brent cash prices fell back $0.53/b by 16.30 Singapore to $64.47/b, marginally less than the $0.56/b fall in Dubai.
Products
Gasoline cracks rose for the third straight day on Wednesday, with the 92 RON April crack climbing above $7/b for the first time in weeks.
The swap flatlined while Brent eased.
Physical 92 RON was marked at a $0.10 discount to the underlying swap and 95 RON was assessed at a $2.70 premium tracking earlier trades.
Naphtha cracks for April firmed to -$0.09/b as spot trades pointed to a firmer market.
Two deals were heard at a flat price of $573/mt, which was an $8/mt premium to the underlying swap. Flat prices were assessed at $574/mt, down $4/mt on the day.
Distillate cracks firmed, clawing back all of Tuesday's losses.
Diesel 10 ppm April swaps were marked $0.25/b down versus a greater fall in crude.
One physical deal was heard for 10ppm at discount to April swaps of $0.35/b, down $0.05/b on the day.
Jet cracks firmed slighty as swaps fell by less than crude.
April's crack was marked at $0.68/b, up $0.18 on the day, but below Monday's levels.
In the fuel oil market, the marine fuel 0.5% cracks were broadly stable, while higher sulfur firmed slightly on stronger physical demand that pushed up swaps.
On the physical side, no deals were heard for marine fuel, while 180cst was marked at a $1.50/mt premium to the underlying market and 380cst at a flat price.