Intermonth spreads for benchmark Dubai crude futures were rangebound in mid-morning trade in Asia August 4 from the day before, with little activity seen ahead of the anticipated release of fresh official selling prices by MIddle Eastern producers.
The September/October Dubai crude futures spread was pegged at a contango of 21 cents/b at 11 am Singapore time (0300 GMT), unchanged from the Asia close on August 3, S&P Global Platts data showed.
The October/November spread was pegged at a contango of 24 cents/b, widening 3 cents/b over the same period.
Meanwhile, the October Brent-Dubai Exchange Futures for Swaps spread was pegged at 30 cents/b, stable from the previous close.
"The market is waiting for new OSPs, so it should be quiet this week," a Singapore-based sour crude trader said.
A bearish tone persisted for Middle Eastern crude market fundamentals amid signs of increasing OPEC+ supply and lackluster demand from Asian refineries.
Reflecting a weaker market, the cash structure for Dubai crude continued to slide as the market entered the new trading month.
The new prompt-month October cash Dubai was assessed at a discount of 38 cents/b to same-month Dubai futures at the Asia close August 3, dipping even further from a discount of 5 cents/b at the Asia close of the previous session on July 30, Platts data showed.
The Dubai cash/futures spread is a key price indicator for the sour crude market, tracked by Middle East producers to define the core direction and extent of price hikes or cuts.
With a weaker market structure and a bearish outlook, most market participants are expecting a decline in the upcoming round of official selling prices, which are expected to be released later this week.
