Benchmark cash Dubai crude’s premium to Dubai futures was weaker at the 12.30 pm Singapore close July 19 after the OPEC+ alliance reached a resolution on their standoff of oil production quotas for August and beyond, alleviating supply-side uncertainty in the market.
S&P Global Platts assessed September cash Dubai at a premium of $2.19/b to the same-month Dubai futures at the 12.30 pm Singapore close on July 19, down 18 cents/b from the previous day.
September cash Oman was assessed at a premium of $2.24/b to same-month Dubai futures at the 12.30 pm Singapore close, down 17 cents/b from the previous day.
Markets eased after the OPEC+ alliance reached a deal over the weekend to increase its production by 400,000 b/d each month starting August, amounting to a 2 million b/d total increase by the end of the year, providing clarity on supply fundamentals in the months ahead.
The agreement involved raising UAE’s baseline production level by 332,000 b/d from May 2022, along with a 500,000 b/d boost for Saudi Arabia and Russia, as well as a 150,000 b/d increment for Iraq and Kuwait.
The Platts Market on Close assessment process saw six September Dubai partials of 25,000 barrels traded.
The Dubai partials were traded with Total, Reliance and Mercuria on the sell side and Shell on the buy side.
Total declared a cargo of September Upper Zakum crude to Shell following the convergence of 20 partials in Platts cash Dubai. This was the first convergence declared in July so far.
A convergence occurs when 20 partials are traded between two counterparties, resulting in a full, 500,000 barrel physical cargo being declared from the seller to the buyer.
Source: Platts