Dubai: Middle East crude oil for sale to Asia rose on signs refiners are seeking to increase output to take advantage of improvements in processing profits.
Oman for immediate loading climbed $1.65, or 2.1 per cent, to $81.10 a barrel, according to data compiled by Bloomberg News. Dubai for May lifting gained $1.66, or 2.1 per cent, to $80.71 a barrel. Abu Dhabi's Murban crude rose 2.1 per cent to $81.56.
Demand from refiners is increasing as they are getting higher profits from turning crude into fuels. The crack margin from processing Oman at a plant with the ability to upgrade fuel oil into gasoline and diesel fuel average $2.16 a barrel during March, up from a mean of $1.74 in February, according to netback data calculated by EnSys Energy and Bloomberg.
SK Energy Co. may process about 910,000 barrels of oil a day next month, a company official, who asked not to be identified because he isn't authorised to speak to the media, said yesterday. That compares with about 820,000 barrels a day a year earlier. Operating rates would rise to 81.6 per cent from 73.6 per cent based on the company's 1.115 million barrel-a-day capacity.
Oman futures for June delivery rose 70 cents to $81.39 a barrel on the Dubai Mercantile Exchange at 5:55pm Singapore time, with 789 contracts traded. The settlement price was set at $78.86 a barrel at 12:30 p.m. Dubai time.
The Brent-Dubai exchange for swaps for May widened 2 cents to $1.92 a barrel and the exchange for swaps for June widened 2 cents to $2.10 a barrel, according to data from brokers PVM Oil Associates. The exchange for swaps is the price difference between Brent and Dubai swaps contracts.
