Dubai: Qatari crude oil for sale to Asia rose to its highest level against its benchmark since May as refiners seek grades with higher yields of middle distillates.
Qatar Marine for November loading rose two cents to a premium of eight cents a barrel, the highest since May 2, according to data compiled by Bloomberg. Cargoes were trading at premiums of as much as 10 cents a barrel, said two traders who participate in the market.
Qatar Marine has a larger yield of middle distillates including gasoil and kerosene, than other typical Middle East crudes. Refiners are seeking these types in order to stockpile heating fuels ahead of winter. Gasoil's premium to benchmark Dubai crude rose to $12.15 a barrel on Monday.
"Asian market sentiment continued to improve especially for medium-heavy grades," said consultants JBC Energy GmbH in their weekly Asian report.
ONGC Videsh Ltd, the overseas unit of India's biggest explorer, sold 700,000 barrels of Russian Sokol crude oil for loading in November to BP Plc, said two traders that participate in the market. The shipment sold at a premium of $3.50 a barrel to the average of Oman and Dubai prices. That was up from October levels of $2.95.
Oman crude for immediate loading rose 22 cents, or 0.3 per cent, to $76.16 a barrel, according to Bloomberg data. Dubai for loading in November increased 22 cents, or 0.3 per cent, to $75.84. Murban climbed 0.3 per cent to $76.40.
Oman futures for November delivery rose 19 cents to $75.79 a barrel on the Dubai Mercantile Exchange at 5:03pm Singapore time, with 1,154 contracts traded.
