Spot premiums for Middle East crude benchmarks Oman and Dubai strengthened on Wednesday after Chinese refiners snapped up several Upper Zakum crude cargoes on top of robust demand from Mitsui.
Unipec has bought at least four November-loading Upper Zakum crude cargoes at a premium of just above $2 a barrel to Dubai quotes, traders said.
Sinochem also purchased two cargoes at similar price levels, they added.
Iraq’s SOMO planned to sell up to 2 million barrels of its heavy sour Qaiyarah crude via the Platts Asia Market on Close assessment process on Thursday.
The state oil marketer had not managed to sell the prompt cargo for loading between Sept. 25 and Oct. 15 via a tender earlier, traders said.
SINGAPORE CASH DEALS
Cash Dubai’s premium to swaps rose for a fourth session, up 10 cents to $2.26 a barrel.
Mitsui will receive another two November-loading cargoes – Upper Zakum from Reliance and al-Shaheen from ExxonMobil – following the trades.
NEWS
Russian insurers are playing a growing role facilitating the country’s oil shipments to India, its biggest buyer, data obtained from trade and shipping sources shows, helping to protect Moscow’s export revenue despite western sanctions.
China’s gasoline exports were down 44% in August from a year earlier while those of diesel fell 29.7%, customs data showed on Wednesday, due to lower refinery output and softening export margins.
The Biden administration will seek up to 6 million barrels of oil for the Strategic Petroleum Reserve, a source familiar with issue said on Tuesday, a purchase that if completed will match its largest yet in the replenishment of the stash after a historic sale in 2022.
India is prepared to keep buying oil from Russian companies that are allowed to make such sales, since prices are cheap, oil minister Hardeep Singh Puri said on Tuesday.
Japan’s customs-cleared crude oil imports fell 15.2% in August from the same month a year earlier, the Ministry of Finance said on Wednesday.
Asia’s ultra low-sulphur gasoil refining margins GO10SGCKMc1 collapsed to the lowest in nearly three years, pricing data from LSEG showed on Tuesday, as excess supply and persistently soft derivative markets depressed prices.
Source: Reuters (Reporting by Florence Tan; Editing by Sonia Cheema)