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The Middle East oil market shot up due to high demand in Asia

Prizes for spot oil shipment of Middle Eastern oil on Thursday soared to a high of more than a year due to active demand in Asia, traders said.

12.Aug.17 11:52 AM
By Daria Zaytseva


The Middle East oil market shot up due to high demand in Asia

High processing margins, a shortage of raw materials from Saudi Arabia and a decrease in arbitration supplies to Asia revived the demand for Middle Eastern oil in the region, they added.

The Japanese processor Fuji Oil acquired four consignments of Middle Eastern oil with a shipment in October, which is twice as high as the previous month. Traders believe that the increase in purchases may be due to the approach of the winter season.

It's about two batches of Murban, which were sold at a premium of about $ 0.3 per barrel to the official selling price (OSP) and two Qatar Land lots sold at a premium of $ 0.35-0.4 per barrel to OSP.

An additional factor supporting the Middle Eastern brand of Dubai was the transition of the North Sea standard Brent market into backwardation - when the prices for oil with immediate delivery are higher than quotations for futures contracts.

The premium on the European oil marker Brent relative to the benchmark in the Asian-Pacific market of Dubai was $ 1 per barrel in July.

In general, the demand for oil in Asia will continue to grow due to the high summer processing margins typical for summer, which are also supported by interruptions in the operation of the refinery, and the introduction of new processing facilities in China.

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