First ever Murban crude cargo declared in Platts MOC process
The first ever cargo of Murban crude was declared via the partials delivery mechanism during the Platts Market on Close assessment process on Friday.
A 500,000-barrel cargo of Abu Dhabi’s Murban crude for October loading was declared by Total to Shell, after Total sold its 20th partial of Oman crude to Shell during the MOC assessment process at $75.95/b on Friday.
The declaration concluded an actively traded session for Oman partials, in which there was firm bidding interest from Shell at the onset as well as active selling from Total as well as other counterparties. Twenty-eight partials of 25,000 barrels each, or 700,000 barrels in total, of October Oman crude traded on Friday.
Platts assessed Oman assessed at $75.95/b Friday, compared to $76.10/b the day before.
The Platts MOC assessment process has had active offers for Oman crude partials since August 15. Three partials of Oman crude changed hands the following day, the first such trading in almost two years.
Since then, several additional partials of Oman crude have since traded in the MOC, bringing the total number of October Oman partials in August traded to 42.
Under the partials mechanism, the seller declares a full 500,000-barrel cargo of crude oil to the buyer after a total of 20 partials have been traded for the same loading month between the companies.
For Oman partials, the seller has the option to deliver an Oman cargo, or alternatively, a Murban cargo with a quality premium, to the buyer.
The Quality Premium for October-loading Murban crude oil was set at $1.4885/b for the month of August.
Platts included Al Shaheen and Murban crudes as alternative delivery crudes in its Dubai and Oman crude oil benchmarks from January 4, 2016.