Murban Crude Oil Falls as Processing Profits Slide on Fuel Glut

By Christian Schmollinger

Feb. 19 (Bloomberg) -- Abu Dhabi’s Murban crude oil fell as refiners purchased less of the grade after a buildup in fuel stockpiles reduced processing profits.

Murban crude for April loading declined 5 cents to a premium of 13 cents a barrel to its official selling price, according to data compiled by Bloomberg News. Oman, another Persian Gulf benchmark, for April loading was at a premium of 18 cents a barrel to its official selling price, according to data compiled by Bloomberg.

Murban’s high yield of middle distillates, including diesel fuel and kerosene, has made the grade unattractive to refiners as their processing profits have declined. Gasoil’s premium to Dubai crude oil, a Persian Gulf benchmark for Asia, was at $7.85 a barrel today, down from $13.80 a barrel a month earlier.

Middle distillate stockpiles in Singapore, Asia’s biggest oil trading center, surged by 2.2 million barrels to 12.9 million barrels in the week ended Feb. 18, International Enterprise Singapore said today. That’s above the six-month average of 10.3 million barrels.

Oman crude oil for immediate loading fell 52 cents, or 1.3 percent, to $40.89 a barrel. Dubai oil for loading in April dropped 59 cents, or 1.5 percent, to $40.15 a barrel. Murban crude declined 1.5 percent to $41.97 a barrel.

Oman crude oil futures for April delivery rose 24 cents to $40.37 a barrel on the Dubai Mercantile Exchange at 5:01 p.m. Singapore time, with 478 contracts traded. The settlement price was set at $40.44 a barrel at 12:30 p.m. Dubai time.

The Brent-Dubai exchange for swaps for April widened 27 cents to 15 cents a barrel and the exchange for swaps for May widened $1.35 to $1.08 a barrel, according to data from PVM Oil Associates. The exchange for swaps is the price difference between the Brent and Dubai swaps contracts.

To contact the reporter on this story: Christian Schmollinger in Singapore at christian.s@bloomberg.net.