• 3 minutes Natural gas is crushing wind and solar power
  • 6 minutes OPEC and Russia could discuss emergency cuts
  • 8 minutes Is Pete Buttigieg emerging as the most likely challenger to Trump?
  • 11 minutes Question: Why are oil futures so low through 2020?
  • 13 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 6 mins Oil and gas producers fire back at Democratic presidential candidates.
  • 5 hours So the west is winning, is it? Only if you’re a delusional Trump toady, Mr Pompeo, by Simon Tisdall
  • 1 min "Criticism of migration will become a criminal offense.  And media outlets that give room to criticism of migration, can be shut down." - EU Official to the Media.
  • 31 mins Saudi Aramco launches largest shale gas development outside U.S.
  • 12 hours Peak Shale Will Send Oil Prices Sky High
  • 4 hours Charts of COVID-19 Fatality Rate by Age and Sex
  • 7 hours CDC covid19 coverup?
  • 9 hours What Is Holding Back Geothermal Heating and Cooling?
  • 21 hours Fight with American ignorance, Part 1: US is a Republic, it is not a Democracy

UAE Light Crude Continues To Trade At A Discount

UAE offshore rig

The United Arab Emirates’ main export crude blend, Murban, has recorded a four-month stretch of selling at a discount to the official selling price of Emirati crude in Asia because of intensifying competition from cheap European and U.S. blends, Reuters reports, citing market data as well as sources from the industry.

The discount ranged between US$0.05 and US$0.40 a barrel for cargoes bound for loading over the first four months of the year. That’s despite a series of cuts in the benchmark price for Emirati crude, Reuters noted, which also stretched over four months.

Usually, this time of the year is a time of higher demand from Asian refiners as they churn out more fuels used in heating during peak demand season. However, there is more light crude coming from the United States as production booms unrestrained, and arbitrage from Europe has opened, Reuters’ Florence Tan notes.

There seems to be an actual oversupply of light crude and this has combined with higher overall prices for Middle Eastern crude because of the cuts agreed in December. The resulting increase in the benchmark Dubai price has made Brent-based blends as well as U.S. ones a lot more attractive to traders and refiners in Asia.

In the immediate term, the UAE’s flagship blend as well as other Middle Eastern blends will likely continue to be pressured as refineries in Asia enter spring maintenance season and demand slumps. Demand for heavy crude, however, is bound to rise further on in the year after maintenance season as refiners prepare for the new lower-emission rules from the International Maritime Organization that come into effect next year.

At the same time, U.S. light crude will continue challenging the market share of Middle Eastern light crude in the observable future, as production continues to grow and prices remain attractive.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage


Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News