Abu Dhabi’s Murban crude rose against its benchmark price to the highest in more than three months after the state oil company cut the official level against regional marker Dubai.
Murban (PGCPMURB)’s premium rose 6 cents to 13 cents above its official selling price, the most since Dec. 8, according to data compiled by Bloomberg News. The increase comes after Abu Dhabi National Oil Co. cut Murban for February loading by 12 cents to a premium of $4.28 a barrel to Dubai on March 6.
Dubai crude’s backwardation, when the price for delivery now is greater than that for later, rose by 3 cents. Swaps for April were $2.88 cents a barrel more than June, according to data from PVM Oil Associates Ltd., a London-based broker. This prices difference is at the highest since November.
The April Brent-Dubai (PVMMDBSP) exchange for swaps, which measures the European benchmark’s premium against the Middle East grade, fell 8 cents to $3.45 a barrel according to PVM data. The May contract fell 4 cents to $3.90.
OAO Surgutneftegas, a Russian oil producer, sold three 100,000 metric-ton cargoes of East Siberian Pacific Ocean crude, or ESPO, for loading in April at premiums of about $3.80 to $4.30 a barrel to Middle East benchmark Dubai, according to four traders who participate in the market and asked not to be identified because the information is confidential. The buyers are Vitol Group, Mitsubishi Corp., and Arcadia Petroleum Ltd., the traders said.
PV Oil Co., Vietnam’s state-owned oil-marketing company, is offering as much as 250,000 barrels of Rang Dong crude for late- May loading, according to two traders who declined to be identified because the information is confidential.The tender closes March 19.
PT Pertamina, Indonesia’s state-owned oil company, reissued a tender for the third time to buy crude for delivery in May, according to a document obtained by Bloomberg News. The tender will close on March 14, with offers valid until the following day, the document showed. Pertamina first issued the tender on Feb. 20 and reoffered it twice.
Indian Oil Corp. bought 4 million barrels of Nigerian crudes from Royal Dutch Shell Plc and Morgan Stanley via a tender, three traders who participate in the market said.
To contact the reporter on this story: Ramsey Al-Rikabi in Singapore at firstname.lastname@example.org
To contact the editor responsible for this story: Mike Anderson at email@example.com