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Thu 6 Jan 2011 04:01 PM

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Middle East oils to Asia climb as Singapore fuel supplies drop

Fuel supplies in Asia's biggest oil trading centre fell by 6.4% in the last week

Middle East oils to Asia climb as Singapore fuel supplies drop
FALLING SUPPLIES: Middle East crude oil rose after Singapore stockpiles fell, increasing demand expectations (Bloomberg Images)

Middle East crude oil for sale to Asia rose after stockpiles in Singapore fell, increasing refiner expectations that demand will gain.

Oman oil for immediate loading climbed $2.27, or 2.5 percent, to $91.89 a barrel, according to data compiled by Bloomberg. Dubai grade for loading in March was up $2.18, or 2.2 percent, at $91.65. Abu Dhabi’s light Murban crude rose $1.65, or 1.8 percent, to $94.58 a barrel.

Demand for crude may climb as fuel supplies in Singapore, Asia’s biggest oil trading center, fell 6.4 percent last week, according to data released today by the government. Refiners are processing more to meet winter heating needs. Japan’s processor ramped up capacity utilization to 87.9 percent from 85.9 percent the previous week, the country’s Petroleum Association said.

Saudi Arabian Oil Co left the official selling price for February cargoes of its Saudi Light, the country’s biggest export grade, to Asia unchanged at a premium of $1.60 a barrel to the average price of Oman and Dubai, the company said yesterday. It lowered prices for its Medium and Heavy types.

Oman futures for March delivery declined 16 cents to $92.71 a barrel on the Dubai Mercantile Exchange at 6:28 pm Singapore time, with 1,114 contracts traded.

The Brent-Dubai exchange for swaps for February, or EFS, widened 2 cents to $3.67 a barrel, according to data from PVM Oil Associates Ltd. The exchange for swaps for March lost 4 cents to $3.42. The EFS is the price difference between Brent futures and Dubai swaps contracts and signifies Brent’s premium relative to the Middle East grade.

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