International spot crude prices rise as renewed Middle Eastern tensions take hold

摘要

Strong Asian buying of Middle Eastern and Russian grades in recent weeks may be slowing as refiners in the region begin to prepare to maintenance shutdowns.In late Dec,Saudi Arabia and Kuwait were said to be close to an agreement regarding the resumption of production in the Neutral Zone between the two countries,but talk of the progress seemed to be overrun by news of escalating tension throughout the Middle East after US airstrikes killed Major-General Qassem Soleimani of Iran and militia commander Abu Mahdi al-Muhandis of Iraq.The Jan.Brent/Dubai Exchange of Futures for Swaps(EFS)has remained below the $3/bbl mark that makes arbitrage feasible since Nov.29 except for a one-day peak to $3/bbl on Dec.30.The window gained 8￠/bbl over the two weeks to Jan.3 to end at $2.68/bbl.From Dec.20 to Jan.2,OPEC's basket of crudes declined by 85￠/bbl to close at $67.15/bbl.(As of the time of writing,OPEC had not posted its basket price for Friday,Jan.3.)Cash prices for Dubai crude gained 93￠/bbl over the two weeks to end at $67.83/bbl,while Murban saw a $2.13/bbl increase to $70.06/bbl.Price assessments by S&P Global Platts placed benchmark Dubai crude at an average of $64.889/bbl in Dec.-a $2,915/bbl increase from Nov.-while Oman crude averaged $2.583/bbl higher at $65.36￠/bbl.