Dubai Prompt Time Spreads Rise on Middle East Sour Crude Tightness

Prompt time spreads in the Dubai futures market rose almost to the highest in three months on 20 February, underlining bullish sentiment in the oil complex and tightness of sour crude supplies from the Middle East for the April loading cycle according to S&P Commodity Insights.

• Platts assessed the Dubai front-month time spread (March/April) at 62 cents/b at the 20 Feb Asian close, up 33 cents/b, or 113.79%, on the month, S&P Global Commodity Insights data showed. The spread was last higher on 27 November, 2023 at 65 cents/b.
• Middle East sour crude supply have been heard tighter for the April-loading cycle this month. Only 15 cargoes of Qatar's Al-Shaheen crude were heard available for the April-loading cycle, down from 20 cargoes for the March-loading cycle.
• Upper Zakum crude supply also declined after ADNOC finished implementing its Crude Flexibility Project, which will allow it to refine up to 420kbpd of heavier, sourer crudes at Ruwais, particularly Upper Zakum, while leaving more barrels of lighter, less sour Murban crude available to export.
• "The market is tighter than some people think. Al-Shaheen is tight and Upper Zakum is tight," a trade source said.