The costs have led WTI Midland to trade at about $3 a barrel over Dubai quotes delivered to North Asia in October, slightly cheaper than Abu Dhabi’s flagship Murban, which has a higher sulphur content. Sweet or low-sulphur oil is typically more expensive than sour crude.
In the middle of the month, more sulfurous Oman was valued above Murban, a rare reversal.
Platts assessed WTI Midland on a CFR North Asia basis at a discount of $1.31/b to Murban on Nov. 29, reflecting an inversion of the typical relationship between Murban and WTI Midland as the latter is typically priced at a premium to the former.
However, some sources have noted that the shorter haul to Asian refineries and smaller parcel sizes for Murban crude could allow the grade to retain its competitive advantage.