KUALA LUMPUR (March 4): Malaysia’s Tapis crude oil continued to surge higher in tandem with strong global crude oil prices.

On Thursday (March 3), it jumped 10.02% or US$10.62 to a fresh record of US$116.58 per barrel.

Reuters said Brent crude futures, the international benchmark for oil, climbed to within 16 cents of US$120 a barrel before falling on hopes the United States and Iran will agree soon to a nuclear deal that could add output to a badly undersupplied market.

At the time of writing, Brent fell 2.19% or US$2.47 to US$110.46 while WTI crude gained 1.51% or US$1.63 to US$109.40.

Tapis crude oil is used as a pricing benchmark in Singapore.

Tapis is very light, with an API gravity of 43°-45°, and very sweet, with only about 0.04% sulphur.

While it is not traded on a market like Brent Crude or West Texas Intermediate, it is often used as an oil marker for Asia and Australia.

The price of Tapis in Singapore is often considerably higher than the price of benchmark crude oils such as Brent or West Texas Intermediate, the more commonly referenced in market commentaries.

This is because its lightness (i.e. higher ° API) allows for greater production of higher-value products, such as petrol, than from Brent or WTI.

Its high price is also due to the purity of the blend, while its extremely low sulphur content means it requires less refinery processing than sourer crude oils.