Premiums for Murban, Abu Dhabi’s flagship export crude, rose to the highest level since 2005 amid rising profits for refiners.
Murban, a frequently traded Middle East grade that is popular with Asian refiners, rose 18 cents to 91 cents above its own official selling price, according to data compiled by Bloomberg. A cargo of the grade fetched a premium last week as high as 95 cents a barrel, said three people who participate in the market, asking not to be identified because they aren’t authorized to speak to the media.
Refining margins in Singapore, the average profit from processing a barrel of Dubai crude into fuels such as diesel and gasoline priced in the regional trading hub, averaged $4.61 during the last five days, the third day of gains and the highest level since Sept. 5, according to data compiled by Bloomberg. The 30-day average is $5.03 a barrel.
When refined, Murban crude yields nearly 40 percent middle distillates such as diesel, or gasoil. The profit from producing the fuel in Singapore rose 9 cents today to $19.62 a barrel, up 20 percent from a year earlier, according to a data from PVM Oil Associates Ltd., a London-based broker.
Japan’s kerosene stockpiles were at 2.92 million kiloliters in the week ending Sept. 15, about 10 percent less than the same time last year, according to data from the country’s Petroleum Association.
Asian refiners will import 1.6 million barrels a day of African crude in October, near the lowest level this year, according to a survey of seven traders and an analysis of loading plans obtained by Bloomberg News.
Refiners bought 52 cargoes from Angola, Nigeria, the Republic of Congo, Equatorial Guinea and Gabon, the survey showed. This compares with 51 shipments for loading this month, and near the 1.41 million barrels shipped in July.
Libya’s state-run National Oil Corp. increased its official selling price of benchmark Es Sider crude for October to a discount of 20 cents from 70 cents a barrel less than Dated Brent in September, according to a price list obtained by Bloomberg News.
Marubeni Corp. sold about 600,000 barrels of Libya’s Mellitah crude to Mangalore Refinery & Petrochemicals Ltd., a unit of India’s biggest energy explorer, said two traders who asked not to be identified because the information is confidential.
Total SA sold 2 million barrels of Nigerian crude for November loading to Indian Oil Corp., the nation’s largest refiner, said three traders who asked not to be identified because the information is confidential. Total sold the Indian company 1 million barrels each of Qua Iboe and EA crude, they said.
PV Oil Co., Vietnam’s state-owned oil-marketing company, offered to sell as much as 600,000 barrels of its Bach Ho crude for November, said three people who participate in the market, asking not to be identified because the information is confidential. Bids are due tomorrow.
The Bach Ho for November will be heavier than earlier shipments. The crude will have a gravity of 35.4 to 36.5 degrees API, according to one of the people who received the tender. The grade was earlier assessed to be lighter, at 40.8 degrees, according to New York-based Energy Intelligence Group.
Dubai crude’s backwardation, when near-term shipments are more expensive than later deliveries, fell 16 cents. Spot prices were $1.44 a barrel more than levels for cargoes two months later, according to data from PVM.
The November Brent-Dubai exchange for swaps, which measures the European oil’s premium to the Mideast marker, fell 8 cents to $3.52 a barrel, according to PVM data. The December EFS lost 9 cent to $3.33.
Oman oil for November rose 8 cents to settle at $108.15 a barrel at 12:30 p.m. on the Dubai Mercantile Exchange.
No Dubai partial cargoes were traded today, according to a survey of people who monitor the Platts pricing window.