S&P Global Platts assessed benchmark front-month May cash Dubai crude at $63.31/b on March 31, the last day of trading for May-loading Middle East crude.
The front-month cash Dubai assessment averaged $64.414/b in March, up from $60.855/b in February, S&P Global Platts data showed.
May cash Oman crude was assessed at $63.31/b March 31, and averaged $64.467/b in March, up from $60.923/b in February.
In March, cash Oman premium to cash Dubai averaged 5.2 cents/b, narrower from 6.8 cents/b in February.
The sour complex strengthened in the first half of the month after a surprise move by OPEC+ and Saudi Arabia to largely maintain cuts for April production.
Cash Dubai outright price initially rose after the extension of OPEC+ production cuts to hit a 14-month high of $68.30/b on March 8, before tapering off as supplies from other regions weighed on the market, Platts data showed.
The Dubai cash/futures spread – a measure of the market structure – strengthened in backwardation to average $1.19/b in March, up from 69 cents/b in February.
Partial trades highest since June 2019
The Platts MOC assessment process on March 31 saw a total of 93 trades of 25,000-barrel partials, taking the month's total to 376 partials – the highest number of partials traded in a month since June 2019 when a total of 540 partials traded on the Platts MOC assessment process, Platts data showed.
Of the total partials traded in March, 328 consisted of Dubai partials, 42 consisted of Oman partials, and six were Murban partials.
Prior to March, Murban partials were last seen traded on the Platts MOC assessment process in February 2019, Platts data showed.
Meanwhile, a total of nine convergence cargoes were declared in the Platts MOC assessment process in March, seven of which were declared into the Dubai partials mechanism while two were declared into the Oman partials mechanism.
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.
For Dubai partials, the seller has the option to deliver a Dubai, Oman, Upper Zakum, Al-Shaheen or, with a quality premium, Murban cargo to the buyer.
For Oman partials, the seller has the option to deliver Oman, or, with a quality premium, a Murban cargo to the buyer.
Of the seven convergence cargoes declared into the Dubai partials mechanism, one was for Dubai crude while there were three each for Upper Zakum and Oman crude grades.
Unipec declared two cargoes of Upper Zakum crude and one cargo of Dubai crude to buyer PetroChina, while sellers Reliance and Vitol declared one and two cargoes of Oman crude to PetroChina respectively. Total declared one cargo of Upper Zakum crude to PetroChina.
In addition, two Oman cargoes were declared into the Oman partials mechanism in March, with Unipec declaring both cargoes to buyer PetroChina.
