Demand for grades may climb as NE Asian refiners increase their winter purchases.
Oman crude oil, an Arabian Gulf benchmark for Asia, rose as refiners started early purchases of the grade on expectations of stronger demand spurred by winter fuel needs.
Reliance Industries purchase a cargo of Oman for November loading at a discount of about 90 cents a barrel to Dubai oil, said four traders who participate in the market.
That compares with a discount of $1.30 for October cargoes.
Demand for grades such as Oman and Qatar’s Al-Shaheen may climb as Northeast Asian refiners increase their purchases before winter. Offers from sellers for Qatar’s Marine grade, similar to Al Shaheen, were at a premium of 10 cents a barrel.
Saudi Arabian Oil, the world’s largest state owned oil company, will supply full contractual volumes of crude to Asian customers for loading in October, according to refinery officials in Japan and South Korea. This is the 11th month they have kept levels unchanged.
Oman crude for immediate loading rose $1.11, or 1.5 percent, to $75.94 a barrel, according to Bloomberg data.
Dubai for loading in November increased $1.11, or 1.5 percent, to $75.62. Murban climbed 1.5 percent to $76.18.
Oman futures for November delivery fell 12 cents to $75.59 a barrel on the Dubai Mercantile Exchange at 5:17 p.m. Singapore time, with 931 contracts traded. The settlement price was set at $75.58 at 12:30 p.m. Dubai time.
The Brent-Dubai exchange for swaps for October widened 17 cents to $2.10 a barrel, the most since Aug 13, and the exchange for swaps for November widened 15 cents to $1.63 a barrel, according to data from brokers PVM Oil Associates.
The exchange for swaps is the price difference between Brent and Dubai swaps contracts.For all the latest UAE news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.