Participants in the Platts Middle East crude Market on Close assessment process have finalized the physical delivery of 500,000 barrels of Oman crude scheduled for July loading, based on trade performance data gathered by Platts, a unit of S&P Global Energy.
Forward Cycle and Convergence
Crude cargoes in the Middle East trade on a two-month forward basis, meaning July-loading product originated from convergence cargoes nominated in May.
During the July Middle East crude MOC process, partials traded led BP to declare a 500,000-barrel Oman cargo for July loading to Vitol. A convergence occurs when 20 partials are exchanged between two counterparties, resulting in the seller declaring a full 500,000-barrel physical cargo to the buyer.
May Activity Decline
May MOC activity dropped 73.4% month over month to a six-year low, with only 74 partials traded. The last time traded volume was lower was in May 2020, when 42 partials were traded. Performance tracking Platts closely monitors the execution of trades reported through the MOC process as part of its ongoing dedication to maintaining the highest standards of integrity and transparency. As part of this tracking, Platts has examined various performance aspects, including the timeliness of nominations, loading completion, and other published trade parameters. Source: Platts
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