14 October 2024: 09:30 BST
After losing steam on Friday, Dubai is starting to shed some of its physical premium. Trafigura and fellow sellers in the window are back in control. Totsa couldn’t grab enough partials to keep the physical premium above the $1.68/bbl average this month, shedding 18c since yesterday. BP, Phillips66, and Exxon were keen sellers, with Mitsui and Totsa on the buy side. Mitsui’s bidding did land them a cargo of Upper Zakum following convergence with Trafigura for the second convergence this month after Totsa netted another Upper Zakum from Exxon on Friday. The physical differentials are coming in below the current month average and also below September’s average. But a trader still considered them strong as the markets are heavily backwardated. ‘All this talk about a weak China and a softening economy is not doing much to the price,’ he said. ‘The more nothing happens, the more nothing happens,’ said another trader. ‘It was a soft start for dated as well, prices are soft but nothing much is happening,’ he concluded.
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