Bloomberg News

Oman Crude Drops to Eight-Month Low on Losses From Fuel Oil

October 31, 2011

(Updates with today’s settlement price in second paragraph.)

Oct. 31 (Bloomberg) -- Oman crude, the most widely traded spot grade in Asia, is set to sell in December at the lowest price in eight months as refiners’ incur widening losses on turning high-sulfur oil into residual products.

The official selling price of the so-called “sour” crude will be $104.88 a barrel in December, according to a Bloomberg calculation based on average daily settlement prices this month of futures contracts on the Dubai Mercantile Exchange. That’s down 2 percent from November. Today’s settlement at 12:30 p.m. Dubai time was $105.53, the exchange said in an e-mail.

Fuel oil’s discount to Asian benchmark Dubai crude has widened 2.9 percent in October to $2.79 a barrel, according to data from PVM Oil Associates Ltd., a broker. This crack spread narrowed in the previous two months.

The Dubai Mercantile Exchange quotes Oman crude futures for delivery two months ahead, meaning prices for January 2012 would be settled over next month’s trading.

--Editors: Mike Anderson, Alexander Kwiatkowski.

To contact the reporter on this story: Yee Kai Pin in Singapore at kyee13@bloomberg.net

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


Best LBO Ever
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus