Brent-Dubai EFS near 17-month high amid stronger Brent price
- Source: chemnet
Brent/Dubai Exchange of Futures for Swaps, the premium of ICE Brent
crude futures to Dubai swaps, eased some of its gains on Wednesday
following the ICE Brent November Futures contract's price movement,
after hitting a near 17-month high on Tuesday.
November EFS was assessed at $2.33/b at the 4:30 pm Asia close
Wednesday, down from $2.59/b Tuesday, which was the highest since May
12, 2016, when it had touched the same level of $2.59/b, according to
data from S&P Global Platts.
reason behind the strength seen in EFS in recent days was rising crude
prices, with the ICE November Brent Futures contract touching an
intraday high of $59.49/b, the highest for the front-month contract
not seen since July 2015, before retreating to settle at $58.44/b on Tuesday.
disruptions, combined with a solid global demand, are working to
support prices," ANZ Research analysts said in a note earlier
growing bullishness in the market stemming from various factors,
including improving compliance from OPEC producers, a stalling US rig
count, and declining inventories in the US, has helped in boosting
crude prices, analysts said.
the European benchmark has eased some of its gains on profit- taking
to settle at $57.90/b on Wednesday. Following suit, the EFS also eased
some its gains to settle at $2.33/b on Wednesday.
monthly basis, the Brent/Dubai EFS averaged at $1.86/b in September to
date -- the highest since December last year when it was at $2.17/b,
Platts data showed.
wider EFS has limited opportunities for arbitrage barrels from the
West to Asia and has partly supported the demand for Dubai-linked
crudes this month, traders said. A wider EFS raises the value of
Brent-linked crudes against Dubai, making the Dubai-linked crudes more
attractive to buyers.
the stronger demand for these crudes, cash differentials for Far East
Russia's Sokol crude hit a nine-month high of $4.00/b premium to
Platts Oman/Dubai assessments on Wednesday, while cash differentials
for November-loading Abu Dhabi's Murban crude have also risen to
17-month highs during in September, Platts data showed.