Middle East crude benchmarks Oman, Dubai and Murban dropped on Monday, tracking a price retreat of global benchmarks Brent and WTI, as fears eased of an oil supply disruption due to the Israel-Hamas conflict.
Spot premium for medium sour crude Oman dipped to $2.25 a barrel over the Dubai quotes, its lowest level so far this month.
The price decline also came as the market questioned purchase demand in China, the world’s biggest crude oil importer. Crude inventory in China stood near a two-and-a-half-year peak level of about 960 million barrels, according to data compiled by data analytic firm Vortexa.
SINGAPORE CASH DEALS
Cash Dubai’s premium to swaps fell 11 cents to $2.25 a barrel.
NEWS
South Korea’s state-run Korea National Oil Corp (KNOC) said on Monday that it has signed an oil storage agreement with Saudi Arabia’s oil giant Aramco 2222.SE to reserve 5.3 million barrels for five years.
Oman’s Salalah port will be temporarily shut down starting from Sunday 5 p.m. (1300 GMT) due to Cyclone Tej, the state news agency reported on Saturday.
China’s CNOOC 0883.HK announced on Monday the discovery of a large deep-reservoir coalbed methane field in the north of the country with proven geological reserves of over 100 billion cubic meters (bcm) of gas.
U.S. energy firms this week added oil and natural gas rigs for a second week in a row for the first time since mid September, energy services firm Baker Hughes BKR.O said in its closely followed report on Friday.
Source: Reuters (Reporting by Muyu Xu; Editing by Janane Venkatraman)