Oct. 19 (Bloomberg) -- Premiums of Middle East oil for sale to Asia were little changed after rising for the past five days on gains in processing profits.
Murban, produced by Abu Dhabi National Oil Co., remained at a premium of 21 cents, according to data compiled by Bloomberg. Upper Zakum, also produced in the emirate, stayed at a premium of 51 cents a barrel, the highest since Sept. 20.
Refinery demand for crude in the spot market is starting to wane, said two traders who participate in the market. Companies were still offering cargoes of Murban at premiums of about 30 cents a barrel, the traders said.
Kenya Petroleum Refineries Ltd., operator of the country’s only oil-processing plant, bought a 600,000 barrel cargo of Abu Dhabi’s Murban crude from Addax Petroleum Corp. for delivery in December, said two traders who participate in the market, declining to be identified because the information is confidential. The company paid a premium of about 65 cents a barrel to the grade’s official price, including the cost of freight.
Dubai swaps for November narrowed to a premium of $1.53 a barrel today compared with January from $1.57 yesterday, according to data from PVM. This market situation known as backwardation suggests demand is greater for immediate shipments.
Oman crude for immediate loading rose $2.35, or 2.2 percent, to $107.80 a barrel, Bloomberg data showed. Dubai oil for loading in December gained 2.2 percent to $107.32. Murban for spot delivery climbed 2.1 percent to $112.12.
Oman futures for December delivery was unchanged at $108.90 a barrel on the Dubai Mercantile Exchange at 5:54 p.m. Singapore time with 1,540 contracts traded. The settlement price was $108.57 at 12:30 p.m. in Dubai.
The December Brent-Dubai exchange for swaps, which measures the European marker contract against the Persian Gulf grade, narrowed 8 cents to $5.09 a barrel, said PVM. The exchange for swaps for January rose 2 cents to $4.70.
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