Qatar reduces December OSPs, Al Shaheen January premiums seen lower
Quantum Commodity Intelligence - Qatar is the latest National Oil Company (NOC) to release Official Selling Prices (OSPs) for Asian refiners, largely following the direction of Saudi OSPs released last week.
QatarEnergy set its Qatar Marine grade for December at a premium of $4/b over Platts Dubai/Oman, down from $4.55/b on November barrels, while lighter Qatar Land was set at +$4.80/b versus +$5.15/b for November.
The OSPs were largely in line with expectations after Saudi Arabia reduced its OSPs to Asia, while the weaker Dubai crude structure last month indicated lower premiums.
Asian OSPs, which include two months of market structure, narrowed as the key M1/M3 Dubai cash spread averaged $4.75/b in October compared to $5.36/b in September, according to Quantum data.
Aramco cut differentials for the flagship Arab Light grade for Asia to Platts Dubai/DME Oman +$5.45/b for loading next month, versus +$5.85/b for November cargoes.
So far in November, the M1/M3 Dubai cash spread has averaged $4.03/b, which could suggest further OSP cuts for February.
Quantum's monthly average price for December-loading Dubai traded last month was $91.13/b, a marginal gain of 0.25%.
Qatar Marine is a medium sour crude (API 32.6, sulfur 1.84%), while Qatar Land is a light-medium crude (API 41, sulfur 1.22%).
Al Shaheen
Meanwhile, the state-owned producer is expected to offer its keenly-watched Al Shaheen tender early next week. Premiums are expected to be slightly lower than last month's award at Dubai $4-$4.40/b for December barrels, according to traders.
Like most Middle East crude, Al Shaheen is sold two months forward, but prices against assessments are published in the month of loading, so include two months of market structure.
The M1/M3 (Jan23/Mar23) Dubai was assessed by Quantum on Friday at +$3.66/b and although up slightly from the month's lows, this still indicated lower premiums for Al Shaheen.
Based on the current market structure, bids at around the Dubai swaps +$3.50/b to $4.00/b level are expected for January-loading Al Shaheen, depending on dates.
Traders closely watch Al Shaheen as it is one of the component grades delivered against the Dubai benchmark, along with Oman, Dubai, Upper Zakum and Murban.
