Middle East Crude-Dubai rises sharply on choppy EFS market
Middle East crude benchmark Dubai edged sharply higher on Wednesday despite thin trade, led by volatile price movements in the Brent-Dubai EFS spread.
Cash Dubai’s premium to swaps rose to $3.38 a barrel, hitting an eight-month high.
November was pegged at a premium of $2.70 a barrel at the Asia close (0830 GMT) on Wednesday, compared with $2.20 a barrel on Tuesday, based on LSEG data.
The spread has remained volatile in the last five trading sessions, ranging between a premium of $1.85 and $2.70.
U.S. crude stockpiles at the key Cushing, Oklahoma, storage hub are at their lowest in 14 months due to strong refining and export demand, data showed.
This has prompted concerns about the quality of the remaining oil and the potential to fall below minimum operating levels, traders and analysts said.
Further drawdowns at Cushing, which is the delivery point for U.S. crude futures, could also provide new upward pressure on oil markets as it would compound supply tightness stemming from OPEC+ supply cuts.
SINGAPORE CASH DEALS
Cash Dubai’s premium to swaps rose 52 cents to $3.38 a barrel.
China’s oil product exports are set to rise in October as state-owned refiners capitalise on lucrative margins and some western demand, while international flights recover, industry sources and analysts said.
Pakistan National Refinery Limited (NRL) has started producing very low sulphur fuel oil for ships and is planning to expand its monthly output by at least five-fold in six months, the company said late Tuesday.
TotalEnergies restarted the large crude distillation unit on Saturday at its 238,000 barrel-per-day (bpd) Port Arthur, Texas refinery, said people familiar with plant operations.
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Varun H K)