Prompt intermonths for Dubai crude remains steady; focus on Jan-end buying

Prompt intermonth spreads for benchmark Dubai crude were largely steady Jan. 26, as the market focused on month-end buying from Asian refiners, with March-loading trade nearing a wrap.

At 2 pm in Singapore (0600 GMT), the March/April Dubai time spread was pegged at 28 cents/b, unchanged from the Asia close Jan. 25, S&P Global Platts data showed.

The April/May Dubai intermonth spread was pegged at 37 cents/b, up 3 cents/b from the previous day, the data showed.

With March-loading trade nearing its end, the market focus has shifted to any last minute tenders issued by Asian buyers to clear leftover cargoes for Middle East crude.

Japan’s Fuji Oil issued a tender for purchase of 500,000 barrels of March-loading Murban crude. The tender closes Jan. 26 with same-day validity.

Due to a spike in COVID-19 cases leading to refinery turnaround and poor product demand, Asian buying for Middle East crude has been weak.

“Maybe India will issue a tender to buy some crude this week if there is a lot of unsold stock. Else do not see much buying from China or other Asian countries,” said a trader with a North Asian refiner.

The front-month Brent/Dubai Exchange of Futures for Swap was valued at 94 cents/b at 2 pm (0600 GMT) in Singapore on Jan. 26, up 2 cents/b from the Asian close on Jan. 25, Platts data showed.

The Brent/Dubai EFS is a key indicator of the spread between light, sweet and heavy, sour crudes, and a wide EFS makes crude priced against Dubai more economically attractive for Asian refiners compared to Brent-linked ones.
Source:Platts