Benchmark cash Dubai remained steady at the Asian close Jan. 21 on the back of firming demand cues from the Middle East crude market.
S&P Global Platts assessed March cash Dubai at a premium of 49 cents/b to the same-month Dubai futures, up half a cent/b from the close on Jan. 20.
Similarly, March cash Oman was also valued at a premium of 49 cents/b to front-month Dubai futures, unchanged from the previous day.
The sentiment in the Middle East crude market was optimistic post issuance of a spate of tenders by key Asian buyers.
China's Rongsheng had issued a tender for purchase of crude loading in March, and was heard to have purchased two-million barrels each of Das Blend crude and Oman crude.
Similarly, Thailand's IRPC was heard to have bought one-million barrels of March-loading Upper Zakum and 500,000 barrels each of Das Blend and Banoco Arab Medium crude through a tender that closed Jan. 19.
The Upper Zakum crude was heard to be traded at discounts of 15 cents/b to 18 cents/b to the grade's official selling price. The Das Blend was heard to have traded at a small premium while Banoco crude traded at a small discount. However, the same could not be immediately confirmed.
"Given the current state of the market that seems good value [on Upper Zakum]," said a trader in Singapore, adding that spot differentials should trade at better values for the rest of the month.
The outcome of remaining tenders issued by Indian Oil Corp. and MRPL, as well as Taiwan's Formosa, will be keenly watched as traders expect it will help avoid a massive supply overhang and support spot differentials.
Premiums for lighter grades like Murban and Das Blend are expected to trade at minimal levels for the rest of January as demand from Japanese buyers for the grades has increased considerably on the spot market, some traders said.
The Platts Market on Close assessment process on Jan. 21 saw nine 25,000-barrel Dubai partials traded.
The Dubai partials were traded with PetroChina, Mercuria, Unipec, Shell and Reliance on the sell side, and Total and Lukoil on the buy side.
