FALLING DEMAND ATTENDED PRESSURE ADNOC’S OCT OSP DIFFERENTIALS FOR MURBAN, DAS BLEND CRUDES

Differentials of Abu Dhabi National Oil Carbon monoxide’s main asking price for October-loading Murban as well as Das Blend crude cargoes versus the standard of Platts front-line Dubai evaluations are expected to be cut for the 4th straight month, mirroring declining demand for light-sour crude qualities, traders claimed Tuesday, November 4.

The Upper Zakum OSP differential, nevertheless, is anticipated to climb up, showing a surge in area need for the medium sour quality in October.

The premium for light-sour Murban and Das Blend crudes against Platts Dubai might be reduced by concerning 30 cents/barrel for October-loading barrels, while Upper Zakum may climb up by around 50 cents/b, investors claimed.

Need for December-loading light-sour crudes supported a premium market for Das Blend as well as Murban earlier in October.

However dropping refinery margins in Asia and purchase of arbitrage cargoes, consisting of a North Sea Forties cargo by South Korean refiner SK Power previously last month, left an overhang of the Center East cargoes at the end of October taxing their traded differentials.

Shell used a December-loading cargo of Murban crude in the Platts Market on Close evaluation process for 5 days at the end of October, eventually supplying at a price cut of 70 cents/b to the grade’s OSP, however was not able to amass buying rate of interest.

Total amount additionally used a December-loading cargo of Das Blend throughout the Platts MOC procedure last month, at price cut of 70 cents/b to the quality’s OSP without locating a buyer.

On the various other hand, keen need for December-loading freights of medium-sour crude from Chinaoil pushed Upper Zakum’s place differential greater in October. It was evaluated at a premium of 70 cents/b to the OSP on October 20. https://www.irochemco.com/ purchased a document 47 December-loading convergence cargoes in October– 24 of Oman crude, 22 Upper Zakum crude and also among Dubai crude.

“They have no option but to increase Upper Zakum [differential] because the physical cash money market was greater,” stated a Singapore-based investor.

Murban’s September OSP went to a premium of $1.48/ b to the September Platts Dubai analysis, while Das Blend was at a costs of 43 cents/b to Dubai.

Upper Zakum, at the same time, was at a price cut of 97 cents/b to September Dubai.