Middle Eastern benchmarks Oman, Dubai and Murban dropped on Tuesday amid concerns that demand growth could lag behind supply increase in the coming months, even after OPEC+ leaders reaffirmed supply cut commitments.

OPEC+ oil output cuts of 2.2 million barrels per day (bpd) in the first quarter may not be long enough, analysts and traders said, as crude oil physical and futures prices show increasing signs of surplus ahead of their implementation.

The market still waited for China, the world’s biggest crude oil importer, to disclose the outcomes of the annual Central Economic Work Conference where the country’s top officials were expected to discuss economic targets and map out stimulus plans for 2024. The conference is likely to end on Tuesday.

Qatar Energy’s monthly tender is also awaited. Two or three cargoes of al-Shaheen crude are expected to be sold via the tender.

OSP

Iraq’s state-owned marketer SOMO set January 2024 Basrah Medium crude prices to Asia at $1 per barrel over Oman/Dubai average, down $0.80 from December.

January Basrah Heavy price was set at a discount of $1.9 a barrel against Oman/Dubai average, down 30 cents from December.

SINGAPORE CASH DEALS

Cash Dubai’s premium to swaps fell 23 cents to $0.20 per barrel.

NEWS

Yemen’s Iran-aligned Houthis said on Tuesday they carried out a military operation against the Norwegian commercial tanker STRINDA in its latest operation to protest against Israel’s bombardment of Gaza.

India will expand its refining capacity by about 22% from the current 253.92 million metric tons per year to meet its growing energy demand, junior oil minister Rameswar Teli said on Monday.

European Union countries are close to agreeing a deal on a proposed 12th package of sanctions on Russia focused on a Russia-origin diamond ban and new measures to stem the flow of Russian oil, according to four people familiar with the matter.
Source: Reuters (Reporting by Muyu Xu)