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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
OIL
The Abu Dhabi’s Murban crude premium over the heavier and more sulfurous Upper Zakum crude has fallen close to parity this year. The spread has pulled back from more than 5$/bbl in January to around 0.5$/bbl and was briefly at parity in September for the first time since early 2021 according to Bloomberg.
- The prolonged supply reduction and higher prices of Saudi Arabian grades have supported similar quality varieties like Upper Zakum according to Bloomberg sources.
- Murban premium has also fallen amid lower demand with expectations that Abu Dhabi’s Ruwais refinery will shift away from using the grade as feedstock.
- US, Nigeria and Azerbaijan grades of similar quality to Murban are also less attractive to the key Asian market due to the weaker price.
- Lighter grades are becoming cheaper relative to heavier crudes with Brent futures premium over Dubai falling to the lowest since August at 0.36$/bbl from more than 4$/bbl at the end of September.
Source: Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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