Crude oil from Qatar, which sold all of its supplies last year to Asia, slumped on signs that demand for distillate-rich crudes may be falling as inventories rise. Qatar Land for loading in December was at discount of 7 cents a barrel to its official selling price, up from 8 cents below yesterday, according to data compiled by Bloomberg. Lower Zakum, produced by Abu Dhabi National Oil Co., remained at a 3 cents a barrel discount to its official level, Bloomberg data showed. Refinery demand for Qatari crude, including the Marine grade, typically increases before winter because the type yields large amounts of kerosene and middle distillates after basic processing. Both Abu Dhabi National and state-owned Qatar Petroleum raised their official prices last week, increasing the perception the oil is expensive relative to others. At the same time, Japan’s kerosene stockpiles last week climbed by 91,000 kiloliters to almost 3.4 million, or 21.2 million barrels, the country’s Petroleum Association said last week. Dubai swaps for December widened to a premium of $1.10 a barrel today over January after reaching a two-week high yesterday of 96 cents, according to data from London-based brokers PVM Oil Associates Ltd. This is the largest price difference between the first two months since at least June 2006. This market situation is known as backwardation, suggesting demand is greater for immediate shipments. Oman crude for immediate loading increased $1.70, or 1.7 percent, to $101.10 a barrel, Bloomberg data showed. Dubai oil for loading in December rose 1.7 percent to $100.52. Murban for spot delivery climbed 1.7 percent to $105.14. Oman futures for December delivery fell 95 cents to $101.37 a barrel on the Dubai Mercantile Exchange at 4:44 p.m. Singapore time, with 1,234 contracts traded. The settlement price was $101.61 at 12:30 p.m. in Dubai. The November Brent-Dubai exchange for swaps, which measures the European marker contract against the Persian Gulf grade, widened 10 cents to $5.05 a barrel, according to data from PVM. The exchange for swaps for December rose 18 cents to $4.23. To contact the reporter on this story: Christian Schmollinger in Singapore at christian.s@bloomberg.net To contact the editor responsible for this story: Paul Gordon at pgordon6@bloomberg.net

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