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Russia’s Vityaz, Abu Dhabi’s Murban Trade Higher: Asia Crude

24 May 2012

  • Russia’s Vityaz crude for delivery in July and August sold at higher premiums than cargoes traded last month. Abu Dhabi’s Murban oil rose for a second day.

    Sakhalin Energy Investment Co. sold Vityaz blend for late July to early August at a premium of about $5.50 a barrel to benchmark Dubai oil prices, said two traders who participate in the market, declining to be identified because they aren’t authorized to speak to the media. The company also sold three other cargoes loading from July to early August, one of the traders said.

    The premiums are up from last month. Vityaz for June to July sold at a premium of $5.30, said two traders on April 19.

    Abu Dhabi’s Murban crude rose 3 cents to 35 cents below its official selling price, the second day of gains, according to data compiled by Bloomberg.

    JX Nippon Oil & Energy Corp. halted a crude-distillation unit at its refinery in Kashima, Japan, on May 21 due to an equipment malfunction, according to a company official who declined to be identified, citing company policy. A start date for the 189,000-barrel-a-day unit is “undetermined,” the official said today in a phone interview.

    The profit from turning a barrel of Dubai crude into fuels priced in the oil-trading hub of Singapore averaged $3.28 during the last five days, according to data compiled by Bloomberg. The 30-day average is $4.08 a barrel.

    Dubai Spreads

    Dubai crude’s backwardation, when prices for prompt supplies are greater than future delivery, rose 3 cents. Swaps for June were 78 cents a barrel more than August, according to data from PVM Oil Associates Ltd., a London-based broker.

    The July Brent-Dubai exchange for swaps, which measures the European marker grade’s premium against the Middle Eastern oil, fell 8 cents to $3.62 a barrel, according to data from PVM. The August EFS was down 3 cents at $3.45.

    Oman crude for July delivery fell $1.21 to $102.42 a barrel at 12:30 p.m. on the Dubai Mercantile Exchange.

    Dubai crude for August will sell for 10 cents a barrel above the average settlement price for Oman futures in June, the DME said today in an e-mailed statement. That’s up from a 10-cent discount last month.

    Phibro LLC sold a cargo of Upper Zakum crude to Mercuria Energy Trading SA.

    Mercuria bought the 475,000-barrel shipment of Abu Dhabi’s Upper Zakum crude after purchasing 19 Dubai partial cargoes in May from Phibro during the oil-pricing window operated by Platts, according to a survey of traders who monitor the market.

    Mercuria bought three partial cargoes today from Phibro, two at $102.30, and one at $102.25.

    The partial cargoes must be consolidated into one shipment when the same buyer and seller agree to trade 19 or more of the 25,000-barrel lots during a month. The seller can choose to supply Dubai, Upper Zakum or Oman to the buyer. Arcadia Petroleum Ltd. also bought one from Phibro at $102.20.