Middle East crude benchmarks kicked off a new month's trade on a mixed note on Thursday, with DME Oman holding firm, while Dubai was at a lower premium than last month, as traders awaited new monthly prices from producers due this weekend.
Saudi Arabia is expected to keep prices of light crude grades it sells to Asia little changed in March compared with February, tracking stability in Middle East benchmark Dubai crude, trade sources said. The March official selling price (OSP) for Arab Light crude may stay unchanged, according to five traders at refineries and trading houses consulted in a Reuters survey.
Most of the traders surveyed expect the March OSP for Arab Extra Light to follow suit, although one said the grade could see an uptick of 20 cents a barrel as stronger margins for middle distillates offset the decline in naphtha cracks.
In contrast, weak fuel oil profits are expected to depress the March OSPs for Arab Medium and Arab Heavy, the sources said. The price cuts for the two grades could range from as little as five cents to as much as 60 cents, the survey showed.
ADNOC is likely to raise Murban's February OSP premium to Dubai by about 20 cents to track last month's spot deals while the premium for Upper Zakum could edge down after trades were done at weaker levels, traders said. Qatar may raise Land crude's OSP premium slightly after cargoes were sold at small premiums last month. But traders expect Marine crude's premium to fall by 20-30 cents.
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