Middle East crude benchmarks Oman, Dubai and Murban continued to rise on Wednesday, as the closing of the arbitrage windowfor U.S. shipments spurred demand for regional crude.

Spot premium for medium sour crude Oman and Dubai climbed to $1.19 and $1.21 a barrel over the Dubai quotes, respectively, their highest levels since late November.
The economic incentive to import oil from the U.S. Gulf Coast to Asia has closed as the cost of booking supertankers on the route has surged amid a jump in bookings for the vessels, traders said this week.

The slash inFebruary official selling prices (OSPs) by the Middle Eastern producers also prompted refiners to place more purchase orders this month.

SINGAPORE CASH DEALS

Cash Dubai’s premium to swaps rose 3 cents to $1.21 per barrel.

NEWS

U.S. crude production will hit records over the next two years but grow at a slower rate, the U.S. Energy Information Administration (EIA) said on Tuesday, as efficiency gains offset a decline in rig activity.

The price of Russian Urals oil blend fell to $62.99 per barrel in 2023 from $76.09 in 2022, Russia’s finance ministry said on Tuesday, around the Western-imposed cap of $60, while the oil is currently trading below that threshold, Reuters’ data showed.

Russia’s Transneft state pipeline company said on Wednesday that oil deliveries through its system in 2023 had remained at the same level as in 2022.

Nigeria’s state oil company NNPC is expected to supply four crude cargoes from its February programme to the $20 billion Dangote refinery, which is poised to begin operations after years of construction delays, three sources with direct knowledge of the matter told Reuters.
Source: Reuters (Reporting by Muyu Xu; Editing by Eileen Soreng)