The Middle East and Asia-Pacific markets opened the year on a quiet note on Friday as traders awaited the release of more Middle East crude official selling prices (OSPs).
OSP EXPECTATIONS Saudi Arabia will probably raise the differentials of most of its grades for February on improved refining margins and as Opec supply cuts prompt renewed demand for Middle East crude, lifters said on Friday. December retroactive OSPs looked set to reach new lows of four years or more after Dubai crude oil quoted by price-reporting agency Platts averaged $40.53 a barrel for December, $9.31 lower than November, traders said on Friday.
This leaves Dubai at its lowest since February 2005, when it was set at $39.87 a barrel, according to Reuters records. While outright prices will likely be at four-year lows or more, both Qatar and Abu Dhabi could raise their grades' differentials to Dubai after they traded at premiums to their respective OSPs in December. This would mark the first rise in Murban's premium to Dubai quotes in seven months.