Bloomberg News

Middle East Oil Declines After Producers Raise Official Prices

October 05, 2011

Oct. 5 (Bloomberg) -- Crude oil from the Middle East for sale to Asia fell for a second day after producers raised their official selling prices, damping demand from refiners.

Murban, produced by Abu Dhabi National Oil Co., for loading in November dropped 5 cents to a premium of 8 cents a barrel compared with its official selling price, according to data compiled by Bloomberg. Lower Zakum, also produced in the emirate, fell 14 cents to a premium of 11 cents a barrel, Bloomberg data showed. Qatar Marine remained at a premium of 13 cents a barrel.

Qatar Petroleum, the state-owned producer in the country that last year sold all of its supplies to Asia, raised the official prices of its two export grades. Qatar Marine increased to $107.85 a barrel, up from $105.60, and Land climbed to $110 from $108.15. This came a day after Abu Dhabi National lifted its official levels.

Qatar’s change increases the Marine price to a premium of $1.54 a barrel to the Dubai price published by Platts for the same period. That’s the most since at least the beginning of 2008, according to Bloomberg calculations. Land climbed to $3.69 above the benchmark, the highest since May.

Dubai swaps for December widened to a premium of 74 cents a barrel today over January from 70 cents yesterday, according to data from London-based brokers PVM Oil Associates Ltd.

Oman crude for immediate loading increased 58 cents, or 0.6 percent, to $97.19 a barrel, Bloomberg data showed. Dubai oil for loading in December increased 0.6 percent to $96.61. Murban for spot delivery climbed 1.1 percent to $101.28.

Oman futures for December delivery rose $1.01 to $97.56 a barrel on the Dubai Mercantile Exchange at 6:04 p.m. Singapore time, with 1,215 contracts traded. The settlement price was $98.35 at 12:30 p.m. in Dubai.

The November Brent-Dubai exchange for swaps, which measures the European marker contract against the Persian Gulf grade, narrowed 3 cents to $5.15 a barrel, according to data from PVM. The exchange for swaps for December rose 7 cents to $4.07.

#<125964.3765640.2.1.95.14779.25># -0- Oct/05/2011 10:31 GMT

To contact the reporter on this story: Christian Schmollinger in Singapore at christian.s@bloomberg.net

To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net


Steve Ballmer, Power Forward
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus