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Crude Oil Price Movements

2

OPEC Monthly Oil Market Report – November 2017

ORB component values

improved along with relevant crude oil benchmarks and monthly changes in their

respective OSP differentials. A healthy physical market also supported ORB components, particularly

Middle Eastern crudes. Crude oil physical benchmarks Dated Brent, WTI and Dubai spot prices increased by

$1.21, $1.86 and $2.12, respectively.

Table 1 - 1: OPEC Reference Basket and selected crudes, US$/b

The uplift in the Brent crude benchmark supported prices for light sweet crude

Basket components from

West and North Africa

to remain above $55/b. Saharan Blend, Es Sider, Girassol, Bonny Light,

Equatorial Guinea’s Zafiro and Gabon’s Rabi values increased on average by $1.30, or 2.3%, to $57.38/b.

Nevertheless, physical crude price differentials for these grades were under pressure amid a build-up of

excess cargoes due to weak Chinese demand. Trade was limited and some tenders that were expected to

clear an overhang in November-loading Nigerian crude failed to do so. Asian refiners have increasingly been

moving away from their usual diet, frequently opting for US crude oil as shown by Taiwan's latest tender.

Differentials for Nigerian crude were also under pressure on low US refining demand and with Chinese

refiners increasingly switching their slate to use more US crude over the last few months.

Latin American ORB components

Venezuelan Merey and Ecuador’s Oriente edged up to $50.70/b and

$53.77/b, respectively, gaining $1.57, or 3.2%, and $2.47, or 4.8%. Tight sour crudes supplies in the USGC

amid considerably lower imports of heavy sour crudes from OPEC Member Countries continued to support

these grades.

Buoyed again by the uplift in OSP offsets and support by healthy Asian demand as they prepared to ramp up

heating oil production for peak winter demand in the Northern Hemisphere, the value of

multiple-region

destination grades

Arab Light, Basrah Light, Iran Heavy and Kuwait Export improved further. On average,

these grades’ values expanded by $2.18, or 4.1%, for the month, to $54.89/b.

Sep 17 Oct 17

Oct/Sep

%

2016

2017

Basket

53.44

55.50

2.06

3.9

39.45

50.68

Arab Light

53.29

55.73

2.44

4.6

39.66

50.80

Basrah Light

53.03

55.02

1.99

3.8

38.18

50.13

Bonny Light

56.55

57.97

1.42

2.5

42.94

52.72

Es Sider

55.07

56.48

1.41

2.6

41.67

50.97

Girassol

56.83

57.88

1.05

1.8

42.52

52.63

Iran Heavy

52.27

54.29

2.02

3.9

38.12

50.08

Kuwait Export

52.23

54.50

2.27

4.3

37.89

49.91

Qatar Marine

52.91

55.14

2.23

4.2

40.11

51.20

Merey

49.13

50.70

1.57

3.2

32.32

46.01

Murban

54.94

57.39

2.45

4.5

43.61

53.16

Oriente

51.30

53.77

2.47

4.8

37.12

48.16

Rabi Light

55.10

56.31

1.21

2.2

41.55

51.36

Sahara Blend

56.32

57.88

1.56

2.8

43.27

52.20

Zafiro

56.57

57.73

1.16

2.1

41.32

52.18

Other Crudes

Dated Brent

56.07

57.28

1.21

2.2

42.67

52.37

Dubai

53.51

55.63

2.12

4.0

40.09

51.49

Isthmus

55.20

56.08

0.88

1.6

40.93

53.16

LLS

54.68

57.47

2.79

5.1

43.94

52.32

Mars

51.57

53.99

2.42

4.7

38.99

48.90

Minas

49.20

50.55

1.35

2.7

40.31

47.58

Urals

54.89

56.81

1.92

3.5

41.01

51.35

WTI

49.71

51.57

1.86

3.7

42.18

49.56

Differentials

Brent/WTI

6.36

5.71

-0.65

-

0.49

2.81

Brent/LLS

1.39

-0.19

-1.58

-

-1.26

0.05

Brent/Dubai

2.56

1.65

-0.91

-

2.58

0.88

Year-to-date

Sources: Argus Media, Direct Communication, OPEC Secretariat and Platts.

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