SINGAPORE: The Middle East crude market kicked off November on a strong note, with Dubai and Oman benchmarks at 70-80 cents above Dubai swaps despite thin trade.
OSP PREVIEW: Saudi Arabia will hike December crude prices for customers in Asia to levels last seen in 2013 or 2014, a Reuters survey showed, with OPEC-led output cuts and robust demand re-balancing markets for the commodity.
The producer is expected to raise flagship Arab Light’s December official selling price to at least 90 cents a barrel above Oman/Dubai quotes, the survey of five refiners showed. That would be the highest premium since $1.65 in September 2014, according to Reuters data.
Prices for heavier grades may see a bigger boost in December, the survey showed, with Arab Heavy’s OSP set to rise to at least $1.30 below Oman-Dubai quotes. That would be the narrowest discount for Saudi heavy crude since minus $1.05 in December 2013, according to Reuters data.
Gains in naphtha margins could prop up Arab Extra Light’s OSP in December by at least 50 cents a barrel, the survey showed.
For Abu Dhabi grades, ADNOC is expected to raise the October OSP premiums for Murban and Das by at least 40 cents a barrel, while that for Upper Zakum could rise by more than 20 cents.