Middle East crude benchmarks advanced on Wednesday as Saudi Arabia and Russia reaffirmed their output reduction plans, which would keep sour crude supply tight.

Saudi Arabia will continue with its voluntary output cut of one million barrels per day (bpd) for November and until the end of December 2023.

Meanwhile, Russia will consider next month whether to deepen its voluntary oil production cuts or increase output, while separately continuing its current export cuts until the end of the year, Deputy Prime Minister Alexander Novak said on Wednesday.

The market still awaited comments from the OPEC+ ministerial panel where the oil producers will review the global oil supply and demand situation.

OPEC+ sources told Reuters on Wednesday that the oil cartel is unlikely to tweak its current oil output policy when a panel meets later in the day.

OSP

The Abu Dhabi National Oil Company (ADNOC) has set the November official selling price (OSP) of its benchmark Murban crude at $93.92 per barrel, the company said on Wednesday, up from an October OSP of $87.28.

SINGAPORE CASH DEALS

Cash Dubai’s premium to swaps rose 4 cents to $3.37 a barrel.

ASIAN REFINERIES

Operations of the third refinery at Al-Zour petroleum complex will begin within a few weeks, “specifically before the end of October,” Kuwaiti news agency (KUNA) said, citing Kuwait Integrated Petroleum Industries Company (KIPIC)’s spokesman.

NEWS

The Russian government is discussing partial permission for fuel exports “at all levels”, state-run TASS agency reported on Wednesday, citing Russian Energy Minister Nikolai Shulginov.

India’s share of Russian Urals oil shipments in September declined from August amid refinery maintenance, while Turkey increased purchases due to a shortage of sour barrels in the Mediterranean, according to traders, LSEG data and Reuters calculations.

Talks to restart Iraqi oil exports via a crude oil pipeline that runs through Turkey are still ongoing, an Iraqi oil official told Reuters, a day after Turkey said operations would start again this week following a near six-month stoppage.
Source: Reuters (Reporting by Muyu Xu, Editing by Sohini Goswami)