Middle East crude benchmarks Oman, Dubai and Murban all declined and reversed previous session gains, as traders were eyeing how much volumes Asian buyers will be lifting from Saudi Arabia for August after a dip in official selling prices last week.
However, there are some expectations that demand could be slightly firmer than July following an improvement in refining margins.
The return of some refineries in August-September after scheduled maintenance should also lend support, one China-based trader said, adding that the recent rebound in gasoline refining margins were also supportive.
Meanwhile, the exchange of futures for swaps between Brent and Dubai prices dipped slightly from the previous session but they still remained above $1.50 a barrel.
Complex refining margins for a typical Singapore-based facility have been averaging at slightly more than $3.90 a barrel, LSEG pricing data showed.
SINGAPORE CASH DEALS
Cash Dubai’s premium to swaps fell 11 cents to $1.71 a barrel.
REFINERY NEWS
– Citgo Petroleum Corp began cutting production at its 165,000 barrel-per-day Corpus Christi, Texas, refinery on Saturday ahead of the approach of Tropical Storm Beryl, said people familiar with plant operations.
– A brief power interruption on Friday night triggered multiple unit malfunctions at Valero Energy Corp’s VLO.N 360,000 barrel-per-day (bpd) Port Arthur, Texas refinery, said people familiar with plant operations.
NEWS
– Abu Dhabi National Oil Company (ADNOC) has earmarked a 40% stake in its Ruwais liquefied natural gas (LNG) project to four energy majors Shell, TotalEnergies, BP, and Japan’s Mitsui, sources told Reuters.
– The largest ports in Texas closed operations and vessel traffic on Sunday as Hurricane Beryl intensified as it approached the Texas coast near Houston.
– Russia’s gasoline production is expected to rise by between 15,000 and 20,000 metric tons in the last third of July as two refineries restart operations, the energy ministry said on Friday.
– A wildfire in northern Alberta that forced Suncor Energy to shut in some oil sands production has not moved closer to any infrastructure, Alberta’s wildfire agency said on Friday, although it added that crews expect another challenging day.
Source: Reuters (Reporting by Trixie Yap and Florence Tan; Editing by Janane Venkatraman)