Bloomberg News

Abu Dhabi Oil Rises; New High for Brent-Dubai Spread: Asia Crude

August 16, 2012

Premiums for Abu Dhabi crudes rose for the first time during August. Brent’s premium to Dubai, the Mideast marker grade, widened for a second day to the highest level in more than nine months.

Abu Dhabi’s Murban and Lower Zakum crudes increased by 6 cents to premiums of 7 cents and 5 cents, respectively, over their official selling prices. Umm Shaif rose 7 cents to 5 cents above its OSP.

The October Brent-Dubai exchange for swaps, which measures European oil’s premium to the Mideast marker, rose 40 cents to $5.55 a barrel, the highest since Nov. 8, according to data from PVM Oil Associates Ltd., a London-based broker. It was the second day of gains. The November EFS gained 30 cents to $4.19.

Emirates National Oil Co. Ltd., Dubai’s government-owned refiner, sold about 1 million barrels of Saharan Blend crude to Hindustan Petroleum Corp., India’s third-largest state refiner, said two traders who asked not to be identified because the information is confidential.

Profits from refining a barrel of benchmark Dubai crude into fuels such as diesel and gasoline priced in the regional trading hub of Singapore averaged $6.73 during the last five days, according to data compiled by Bloomberg. The 30-day average is $5.43, the highest since March.

Dubai crude’s backwardation, when the price for near-term deliveries is greater than later supplies, rose 6 cents. Spot prices were 93 cents a barrel more than October levels, according to data from PVM.

Oman oil for October rose $2.08 to settle at $111.71 a barrel at 12:30 p.m. on the Dubai Mercantile Exchange.

Trafigura Beheer BV bought the only Dubai partial cargo sold today, according to a survey of market participants who monitor the Platts pricing window. The trading company paid SK Innovation Co. $111.20 a barrel for one 25,000 barrel lot.

To contact the reporter on this story: Ramsey Al-Rikabi in Singapore at

To contact the editor responsible for this story: Alexander Kwiatkowski at

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