Dubai-LOOP Sour spread shows open arbitrage east: In the LOOP

Feb 13 05:02 2018 Print This Article

The Platts Dubai-LOOP Sour spread has widened to a little more than $3/b so far in February, suggesting an improved and opened arbitrage for US Gulf Coast medium sours grades to head to Asia.

The 10-day moving average spread between second-month Platts Dubai and front-month Platts LOOP Sour was $3.17/b Monday, with LOOP Sour the lower-valued of the two crudes. That compares with a January average spread of about $2.06/b and a Q4 2017 spread of $1.57/b.

As Dubai’s premium over WTI increases, WTI-based medium sour grades become more competitive in export markets with comparable Dubai-based Middle Eastern grades. The spread is thus indicative of the market for USGC medium sour grades in Asia.

Refinery maintenance season in the USGC has pushed down regional demand for LOOP Sour and other domestic medium sour grades. Regional sour benchmark Mars has fallen 60 cents/b since the start of February to be assessed at WTI cash minus $1.65/b on Monday.

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The Barrel

S&P Global Platts provides market insights so people can make more informed trading and business decisions.. They're the leading independent provider of information and benchmark prices for the commodities and energy markets. Customers in over 150 countries look to their expertise in news, pricing and analytics to deliver greater transparency and efficiency to markets. S&P Global Platts coverage includes oil and gas, power, petrochemicals, metals, agriculture and shipping. S&P Global Platts provides critical information for the commodities & energy markets to make physical commodity markets more transparent and efficient. S&P Global Platts blog, The Barrel, provides the essential perspective on global commodities.

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