Tuesday, Mar 06, 2012
-- Abu Dhabi National Oil Co raises Murban OSP to $120.45 a barrel
-- Adnoc OSP largely in line with market expectations
-- Murban likely to kick of May-loading trade at premium
(Adds prices of other grades, market reaction and background)
SINGAPORE (Dow Jones)--State-owned Abu Dhabi National Oil Co. has set the official selling price of its flagship Murban crude oil at US$120.45 a barrel retroactively for February term supply, a $6.25-a-barrel increase from January, an official company notice said Tuesday.
This brings Murban's closely watched premium to benchmark Dubai crude to $4.29 a barrel, down 11 cents.
Adnoc raised the OSPs of its three other export crudes, mainly light sour grades, but lowered their differentials to Dubai.
Traders said Adnoc's Murban OSP was largely in line with expectations as the grade traded at a discount in early April-loading trade. It has since flipped to a premium that is likely to be strengthened in trade for May-loading cargoes after Adnoc lowered the grade's differential to Dubai.
"No real drama [in the Adnoc OSP]. The Saudi OSPs, however, were dramatic," a Singapore-based trader said.
Traders were surprised by Saudi Arabian Oil Co.'s sharper-than-expected increases in its April-loading crude OSPs to Asia, especially for lighter grades such as Arab Extra Light.
The higher Arab Extra Light OSP is likely to boost demand for rival Murban.
Abu Dhabi National Oil Co.'s crude oil official selling prices,
in U.S. dollars a barrel, are as follows:
Feb Jan Change
Murban 120.45 114.20 +6.25
Premium to Dubai +4.29 +4.40 -0.11
Lower Zakum 120.05 113.85 +6.20
Premium to Dubai +3.89 +4.05 -0.16
Umm Shaif 119.65 113.40 +6.25
Premium to Dubai +3.49 +3.60 -0.11
Upper Zakum 117.80 111.60 +6.20
Premium to Dubai +1.64 +1.80 -0.16
-By Gurdeep Singh, Dow Jones Newswires; 65-6415 4064; gurdeep.singh@dowjones.com
(END) Dow Jones Newswires
06-03-12 0951GMT
