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Qatari oil rises as refiners seek more distillate rich grades

Steel News - Published on Wed, 15 Sep 2010

Bloomberg reported that Qatari crude oil for sale to Asia rose to its highest level against its benchmark since May as refiners seek grades with higher yields of middle distillates.

Two traders who participate in the market said that Qatar Marine for November loading rose 2 cents to a premium of 8 cents a barrel the highest since May 2. Cargoes were trading at premiums of as much as 10 cents a barrel.

Qatar Marine has a larger yield of middle distillates including gasoil and kerosene than other typical Middle East crudes. Refiners are seeking these types in order to stockpile heating fuels ahead of winter. Gasoil’s premium to benchmark Dubai crude rose to USD 12.15 per barrel.

Consultants JBC Energy in their weekly Asian report said that Asian market sentiment continued to improve especially for medium heavy grades.

Two traders that participate in the market said that ONGC Videsh Limited sold 700,000 barrels of Russian Sokol crude oil for loading in November to BP Plc. The shipment sold at a premium of USD 3.50 per barrel to the average of Oman and Dubai prices. That was up from October levels of USD 2.95.

According to Bloomberg data, Oman crude for immediate loading rose 22 cents or 0.3% to USD 76.16 per barrel. Dubai for loading in November increased 22 cents or 0.3% to USD 75.84. Murban climbed 0.3% to USD 76.40.

Oman futures for November delivery rose 19 cents to USD 75.79 per barrel on the Dubai Mercantile Exchange at 5:03 PM Singapore time with 1,154 contracts traded. The settlement price was set at USD 75.48 at 12:30 PM Dubai time.

According to data from brokers PVM Oil Associates, the Brent Dubai exchange for swaps for October were unchanged at USD 2.10 per barrel and the exchange for swaps for November widened 13 cents to USD 1.76 per barrel. The exchange for swaps is the price difference between Brent and Dubai swaps contracts.

(Sourced from Bloomberg)

Posted By : admin on Wed, 15 Sep 2010
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