Dubai oil, a Persian Gulf benchmark for Asia, will sell at a wider discount to Omani crude futures in August as the commodity slipped almost 15 percent on global markets this month.
The official selling price for Dubai crude loading in August will be set at a discount of 25 cents to the Oman futures contract for that month, according to an e-mailed statement from the emirate’s Department of Petroleum Affairs today.
The Oman futures contract is the only product traded on the Dubai Mercantile Exchange, which released the differential provided by the Department of Petroleum Affairs. The discount to Omani crude widened from 15 cents for July. Dubai crude sold at 40 cents less than Oman for May and June.
The final August price will be calculated on the last day of trading for that month’s contract, when the Oman level is set. Omani crude for July delivery slipped to $69.42 at the close of trading yesterday from $85.64 at the end of April, according to the Dubai Mercantile Exchange.
Crude oil for July delivery slipped to less than $70 a barrel this month from its close at $86.15 a barrel at the end of April. Oil rose as much as $2.20, or 3 percent, to $73.67 a barrel in electronic trading on the New York Mercantile Exchange today. It was at $73.35 at 12:23 a.m. London time.
Dubai’s Department of Petroleum Affairs generally issues the price formula for its crude on the last Thursday of every month to apply to the closing three months ahead. The Dubai Mercantile Exchange’s futures contract sets the price for Oman’s more than 800,000 barrels a day of production.