BLBG: Dubai Crude Rises to Record Against Oman for March as Asian Demand Gains
Dubai crude, a Persian Gulf benchmark for Asia, will sell at a record price relative to its regional marker as demand for Middle East oil rises.
The official selling price for Dubai oil loading in March will be at parity to Oman futures, according to an e-mailed statement today from the Dubai Mercantile Exchange. That’s up 10 cents a barrel from February and is the first time Dubai isn’t discounted to Oman since the two grades were priced together in September 2009.
Middle East crude has risen on increased demand in Asia, the biggest market for the region’s producers. Refiners in China, which overtook the U.S. last year as the world’s largest crude user, processed a record 8.96 million barrels a day last month, JPMorgan Chase & Co. said last week.
The Dubai Mercantile Exchange, where Oman futures contracts are traded two months forward, provided today’s price announcement from Dubai’s Department of Petroleum Affairs. The department issues its price formula on the last Thursday of every month. The final price for March will be set on the last trading day for that month’s contract, when the official selling price of Oman crude is also calculated.
To contact the reporter on this story: Yee Kai Pin in Singapore at kyee13@bloomberg.net
To contact the editor responsible for this story: Clyde Russell at crussell7@bloomberg.net
