Benchmark Dubai crude futures intermonth spreads were steady in mid-morning trade in Asia on Aug. 25 as physical spot activity in the Middle East crude market slows down after Asian refiners fulfilled their core requirements.
The prompt September/October Dubai crude futures spread was pegged at a contango of 41 cents/b at 11 am Singapore time (0300 GMT), just 1 cent wider than the Asian close on Aug. 24, S&P Global Platts data showed.
The October/November spread was pegged at a contango of 25 cents/b mid-morning Aug. 25, unchanged from the previous Asian close.
Trading activity in the Middle East crude market has eased as Asian refiners have mostly concluded their spot purchases for October-loading barrels of Middle East sour crude following a slew of purchases last week.
While some October-loading barrels were still available in the spot market, sellers were not in a hurry to sell, particularly for the lighter sour crude grades, as they see potential for the emergence of some prompt demand, one North Asian crude trader said Aug. 25.
Reflecting easing demand, October cash Dubai was assessed at a discount of 83 cents/b to same-month futures at the Asia close Aug. 24, down 12 cents/b day on day, Platts data showed.
Dubai's spread to ICE Brent futures, or the Brent/Dubai Exchange Futures for Swaps, was pegged higher at plus 18 cents/b in mid-morning trade Aug 25.
The Brent/Dubai EFS rebounded after narrowing to a more than two-month low of 8 cents/b at the Asian close Aug. 24 amid weak European economic recovery news, and as concerns over the resurgence of coronavirus infections put pressure on the Brent complex.
