SINGAPORE: The Middle East crude benchmark Dubai rose on Wednesday on expectations that the OPEC and non-OPEC output deal to reduce production will start to tighten supplies.
A single Dubai partial traded during the Platts window on Wednesday, with Indian private refiner Reliance selling the partial to Shell at $52.90 a barrel.
Spot trade for Middle East crude has slowed as most buyers have already secured sufficient cargoes to meet their feedstock requirements.
Trade for Russia Asia-Pacific ESPO Blend crude is set to pick up after Russian producer Surgutneftegas issued a tender offering four 740,000-barrel cargoes of February-loading ESPO crude. The tender will close on Dec. 22 and have same-day validity. The four cargoes are due to load Feb. 11-15, 17-21, 21-25 and 24-28.
February-loading ESPO Blend cargoes began trading at firmer premiums between $3.50-4.00 a barrel to Dubai quotes, compared with January premiums that were only done as high as $3.40 a barrel. Firm middle distillate refining margins are likely to have supported values of the Russian crude grade.
Russian producer Sakhalin Energy also awarded its February-loading Sakhalin Blend sell tender at firmer premiums than deals for January-loading cargoes done last month.
Japanese trading firm PetroDiamond and Japanese refiner TonenGeneral were awarded some of the February-loading cargoes at premiums between $2.50 and $2.80 to Dubai quotes, traders said. January-loading cargoes of the grade were done at a premium around $2.30 a barrel.
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