Middle East crude benchmark Dubai extended losses for a third session on Friday despite robust demand from PetroChina while Murban’s premium slumped as most refiners have completed their purchases.
IRANIAN CRUDE
Imports of Iranian crude have been flowing into the port and refining city of Dalian since late last year, tanker tracking firms and trading sources said, helping sustain the country’s purchases of the oil at near record levels.
Vortexa, a consultancy that tracks tanker flows, said 23 cargoes, or a total of 45 million barrels, of Iranian oil was discharged at Dalian between October 2023 and June 2024.
It said this included 28 million barrels discharged at Changxing island, about 85 km (53 miles) northwest of central Dalian.
Another consultancy, Kpler, estimated China imported 34 million barrels into Dalian during the same period.
The figures equate to 124,000-164,000 barrels per day, roughly 13% of China’s total Iranian oil imports during the first half of 2024.
Analysts estimate China imported 1.2-1.4 million bpd of Iranian crude during the period. Vortexa said the imports hit a record 1.52 million bpd last October.
RUSSIAN CRUDE
Trading of Russian ESPO crude for September loading is under way with discounts into China widening to about 70 cents to ICE Brent on a cost-and-freight basis amid persistently weak demand from Chinese teapot refiners.
SINGAPORE CASH DEALS
Cash Dubai’s premium to swaps fell 14 cents to $1.34 a barrel.
PetroChina will receive three September-loading Upper Zakum crude cargoes from Hengli Petrochemical, Vitol and ExxonMobil.
This brings the number of cargoes that the Chinese major received on Platts window to 13 so far this month, including nine Upper Zakum, two Oman, and one each of al-Shaheen and Murban.
NEWS
Mexico’s incoming President Claudia Sheinbaum will likely face a new challenge fulfilling the dream of energy independence that led her predecessor to spend $17 billion on a new refinery: a shortfall in domestic crude supply.
South Korea’s S-Oil 010950.KS, whose main shareholder is Saudi Aramco 2222.SE, on Friday forecast that third-quarter refining margins would rebound, spurred by peak summer season demand for transport fuel.
European oil refiners TotalEnergies TTEF.PA and Neste NESTE.HE warned on Thursday of further weakness in profit margins amid sagging demand, signalling an end to a brief era of stellar profits that followed Russia’s invasion of Ukraine.
Source: Reuters (Reporting by Florence Tan; Editing by Maju Samuel)