Middle East crude benchmark spot premiums drifted lower on Monday after OPEC+ decided to further speed up oil output hikes.

Over the weekend, the group of eight countries announced plans to raise output in June by 411,000 barrels per day, a second consecutive boost.

The news confirmed previous market expectations and sent oil prices lower on Monday, also contributing to more sell-offs in benchmarks trade.

Speedy hikes by the OPEC+ are likely in the following months and could bring back to the market as much as 2.2 million barrels per day by November, sources told Reuters.

SINGAPORE CASH DEALS

Cash Dubai’s premium to swaps fell 7 cents to $0.86 a barrel.

BP will deliver a July-loading Murban crude cargo to PetroChina following the deals.

REFINERY

Canadian oil company Imperial Oil IMO posted its highest-ever first-quarter earnings on Friday, driven primarily by stronger margins in its refining and fuel sales business.

NEWS

Shell Plc SHEL is working with advisers to evaluate a potential acquisition of rival BP Plc BP., though it is waiting for further stock and oil price declines before deciding whether to pursue a bid, Bloomberg News reported on Saturday citing people familiar with the matter.

Big Oil’s first-quarter earnings have shown a clear split in how companies are positioned to weather the downturn sparked by a slump in oil prices to a four-year low in April.

Goldman Sachs reduced its oil price forecast following decisions by the Organization of the Petroleum Exporting Countries and its allies, OPEC+, to accelerate oil output increases, the bank said in a note dated Sunday.
Source: Reuters