Platts crude MOC sees uptick in Murban trading; 2 million barrels traded Tuesday
Active buying interest for Murban crude was demonstrated in the Platts Market on Close assessment process this week, with four 500,000-barrel clips of the crude traded on Tuesday.
Oil major Total had initially offered a 500,000-barrel cargo of Murban crude for November loading in the MOC at a premium 60 cents/b to the OSP as of 0800 GMT on Tuesday.
The cargo was steadily offered lower, and was purchased by trading house Vitol when it reached a premium of 45 cents/b. The cargo was then re-offered and purchased repeatedly, amounting to a total of four trades between Total and Vitol for a total of 2 million barrels of November loading Murban crude.
Total also placed a second Murban offer in the MOC Tuesday, selling barrels of the crude loading over October 15 to November 15 from the Chinese port of Yangpu. The offer stipulated cargo sizes ranging from 500,000 barrels up to 2 million barrels, and was priced on a floating basis against the November Murban OSP plus a differential.
Total initially offered the cargo at a premium of $1.80 to the OSP. As of 0830 GMT, the offer stood at OSP plus $1.20/b, FOB Yangpu, with no buying interest seen.
The Platts MOC also saw bidding interest for Murban earlier this week, when Gunvor had placed a bid for 500,000 barrels of the crude on Monday.
Gunvor had bid up to a premium of 40 cents/b to the November Murban OSP, while an offer from Total for a similar cargo stood at 45 cents/b as of 0830 GMT during the MOC on Monday.
The Platts MOC saw its first ever cargo of Murban crude declared via the partials delivery mechanism late last month.
A 500,000-barrel cargo of October-loading Murban 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 August 31.
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 during the Platts MOC on the day.