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Middle East Oil Falls; Dubai Down 3pc

DUBAI — Crude oils from the Middle East fell on concern demand will taper off after refiners completed purchases to ramp up production.

Oman, a Gulf benchmark for Asia, for immediate loading declined $2.32, or 3.1 per cent, to $72.779 a barrel. Dubai for loading in March decreased $2.32, or 3.1 per cent, to $72.41 a barrel. Murban fell 3.7 per cent to $73.29 a barrel.

Refiners have boosted production to raise their output of middle distillates including kerosene, used as a heating fuel in Japan. The country’s oil processors lifted the capacity utilisation to 81.8 per cent, the Petroleum Association of Japan said last week.

“The third consecutive weekly increase in Japanese utilisation indicates that refiners are responding to higher kerosene demand,” consultants JBC Energy GmbH said in its weekly Asian report.

Oman futures for March delivery rose 4 cents to $72.64 a barrel on the Dubai Mercantile Exchange at 4:36 p.m. Singapore time, with 632 contracts traded. The settlement price was set at $72.63 a barrel at 12:30 p.m. Dubai time. The Brent-Dubai exchange for swaps for March was unchanged at minus 12 cents a barrel and the exchange for swaps for April widened 1 cent to 16 cents a barrel, according to data from brokers PVM Oil Associates. The exchange for swaps is the price difference between Brent and Dubai swaps contracts.