The market structure for benchmark Dubai crude futures was little changed July 3 from the day before, with intermonth spreads trading at rangebound levels as market participants awaited fresh drivers.
At 12 pm in Singapore (0400 GMT), the August/September Dubai crude futures spread was pegged at a 29-cent/b backwardation, narrowing 2 cents/b from the 31 cents/b assessed at the 4:30 pm close (0830 GMT) on July 2, S&P Global Platts data showed.
Meanwhile, the September/October spread was pegged at a 12-cent/b backwardation, stable from the 4:30 pm close July 2.
Market activity was relatively calm July 3 as participants awaited new official selling prices by key Middle Eastern producers that were expected to be released over the weekend.
Tepid demand also capped any further recovery in the market structure amid a backdrop of lackluster refining margins and uncertainty, trade sources said.
"Crack margins are not seeing much improvement and OSP changes are too volatile these days. There is just too much uncertainty," a crude oil trader said. "If the OSP goes up too much, it will be difficult [for buyers] as margins are still not seeing much change," the trader added.
Spot trading activity for September-loading cargoes has also been thin so far as market participants await the release of the new OSPs.
The spread between cash Dubai crude and Dubai futures was seen steady to firmer for the first two days of the September-loading trading cycle.
September cash Dubai were assessed at a premium of $1.29/b to the same-month Dubai futures at the 4:30 pm (0830 GMT) Singapore close July 2, up 9 cents/b from the day before, Platts data showed.
