Middle East crude benchmarks Oman, Dubai and Murban extended losses to Wednesday as the spread between Brent- and Dubai-pegged oil narrowed, following economic recession concerns in Europe.

The spread, known as Brent/Dubai EFS, was pegged at $1.2 a barrel, its lowest level in five weeks. A narrower spread makes hauling oil from Atlantic Basin more economical for Asian refiners.

Spot premium for light sour Murban fell to $2.79 a barrel over the Dubai quotes on Wednesday, a level last seen in late-August.

OSP

Malaysia’s state oil firm Petronas set the monthly price factors for November-loading crude.

SINGAPORE CASH DEALS

Cash Dubai’s premium to swaps fell 22 cents to $2.19 a barrel.

ExxonMobil will deliver one December-loading Upper Zakum to Equinor following the trades.

NEWS

China has set a minimum size for new oil refineries and will ban small crude processors that claim to be chemicals or bitumen producers under its plan to limit total capacity at 1 billion metric tons by 2025, its state planner said on Wednesday.

Global energy traders are emerging as early buyers of Venezuela’s stocks of crude and fuel oil following last week’s easing of U.S. energy sanctions, according to people familiar with the matter.

The European Union is on track towards its goal of ending Europe’s reliance on Russian fossil fuels within this decade, the European Commission said on Tuesday.
Source: Reuters (Reporting by Muyu Xu)