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Wed 10 Nov 2010 03:37 PM

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Qatar, Murban crude oils rise as refiners increase processing

Consumer demand for gas oil and kerosene for heating has climbed before Northern Hemisphere winter

Qatar, Murban crude oils rise as refiners increase processing
oil rig, oil field, oil, energy, GCC energy, GCC oil, black gold

Crude oils from Abu Dhabi and
Qatar rose against their benchmarks because of higher demand from
refiners seeking to meet increased fuel consumption.

Murban,
produced by Abu Dhabi National Oil Co, for January loading rose 7
cents to a premium of 20 cents a barrel to its official selling price,
according to data compiled by Bloomberg. Qatar Marine rose 4 cents to a
premium of 15 cents to its official price, data from Bloomberg showed.

Consumer demand
for gas oil and kerosene for heating has climbed before the Northern
Hemisphere winter, prompting refiners in the region to raise their
processing runs. Japan’s plants operated at 77.5 percent of capacity
last week, up from the 73.9 percent, the country’s Petroleum
Association said.

Oman crude for
immediate loading gained 8 cents, or 0.1 percent, to $86.07 a barrel,
according to data compiled by Bloomberg. That’s the highest level since
May 4 when prices reached $87.40, the most this year. Dubai for January
rose 13 cents, or 0.2 percent, to $85.78. Murban increased 0.2 percent
to $87.26.

The Brent-Dubai
exchange for swaps for December, or EFS, widened 5 cents to $2.65 a
barrel, according to data from PVM Oil Associates Ltd. The exchange for
swaps for January also widened 3 cents to $2.68. The EFS is the price
difference between Brent futures and Dubai swaps contracts and
signifies Brent’s premium relative to the Middle East grade.

Oman futures
for January delivery rose 20 cents to $85.82 a barrel on the Dubai
Mercantile Exchange at 5:52 p.m. Singapore time, with 1,077 contracts
traded. The settlement price was set at $85.83 at 12:30 p.m. Dubai time.