Middle East crude benchmarks Oman, Dubai and Murban extended gains on Monday as the arbitrage window for U.S. crude to Asia closed amid the widening Brent/Dubai spread and rising freight rates.
The spread between Brent- and Dubai-linked crude pegged at $0.85 a barrel, its widest level in two weeks, as concerns over tight supply in the west of Suez market heightened after Libya claimed force majeure at its Sharara oilfield due to protests in the area.
Freight rates to haul crude oil from the United States to Asia have risen over the past days, making WTI crude more expensive than Murban on a delivery basis, according to three trading sources.
Meanwhile, top oil exporter Saudi Arabia on Sunday cut the February price of its flagship Arab Light crude to Asian customers to the lowest level in 27 months, a company statement showed, amid competition from rival suppliers and concerns about supply overhang.
“A more friendly Saudi crude prices could attract refiners to nominate more February-loading cargoes,” said one trader.
SINGAPORE CASH DEALS
Cash Dubai’s premium to swaps rose 9 cents to $0.72 per barrel.
Source: Hellenic Shipping News
