Middle East crude benchmark spot premiums Oman, Dubai and Murban jumped on Thursday, extending a rally supported by healthy demand and some concerns about limited supply.
Iran suspended cooperation with the U.N. nuclear watchdog, raising concerns that the lingering dispute over the Middle East producer’s nuclear program may again devolve into armed conflict.
This, coupled with U.S. and Vietnam reaching a preliminary trade deal, sent both Brent and WTI up by 3% to a one-week high on Wednesday. Both contracts retreated by 0.9% on Thursday.
Abu Dhabi National Oil Company (ADNOC) has restored most of the Murban crude oil supply going to equity holders in July after making a sharp cut earlier, multiple trade sources said on Thursday.
During the Israel-Iran conflict last month, ADNOC notified equity holders that it would cut their Murban crude supply by 3 million to 4 million barrels in July, the sources said.
Most of these volumes have since been restored, they said.
ADNOC did not immediately respond to a request for comment.
SINGAPORE CASH DEALS
Cash Dubai’s premium to swaps rose 29 cents to $3.34 a barrel.
NEWS
The provincial government of Shandong, China’s refining hub, has increased fuel oil import tax rebates for six independent refineries to improve their profitability as they struggle with low margins and fuel demand, industry sources said this week.
U.S. crude oil and gasoline inventories rose unexpectedly last week as both exports and demand fell sharply, the Energy Information Administration (EIA) said on Wednesday.
The U.S. cleared the way to resume ethane exports to China on Wednesday, sending letters to producers Enterprise Products Partners EPD and Energy Transfer ET rescinding a restrictive license requirement put in place just weeks ago, a sign that the U.S.-China trade truce was on track.
Commodities trader Glencore GLEN is in talks with the British government over the status of its supply and offtake contract with the insolvent Lindsey oil refinery, according to a source familiar with the situation.
Source: Reuters