Middle Eastern benchmarks Oman and Murban dipped on Thursday as Brent/Dubai Exchange of Futures for Swaps (EFS) significantly narrowed, making arbitrage cargoes from the West of Suez more economical for Asian refiners.
The EFS, which reflects the spread between Brent- and Dubai-pegged oil, narrowed to $0.91 a barrel, a level last seen in mid-September.
But Mideast oil prices remained supported by supply uncertainties resulting from the tensions in the region.
Oil traders will pay premiums for the annual supply of most grades of Middle East crude in 2024, trade sources said, on concerns over supply from the region after the Israel-Hamas conflict heightened geopolitical tensions.
The annual deals between trading firms buying from producers and equity holders of Middle East crude were mostly concluded by the start of this week, nearly a month since the conflict between Israel and Hamas militants broke out, which sparked fears of a contagion in the region and made global oil prices volatile.
ASIAN REFINERIES
PetroChina’s 601857.SS Sichuan refinery has resumed operations after shutting down for a 34-day planned maintenance, the refinery said in a statement on social media on Thursday.
Sinopec’s 600028.SS Dongxing refinery has shut down its whole plant for 61 days of planned maintenance, starting from Oct. 20, the refinery said in a statement on social media on Thursday.
SINGAPORE CASH DEALS
Cash Dubai’s premium to swaps stayed unchanged at $1.98 a barrel.
NEWS
Singapore’s middle distillates inventories surged by almost 1 million barrels as persistently lower gasoil outflows for a second straight week offset an increment in jet fuel/kerosene net exports, official data showed on Thursday.
U.S. corporates and private equity firms are increasingly eyeing Canadian oil and gas companies for acquisition, drawn by lower valuations, ample fossil fuel reserves and improving market access, according to dealmakers and analysts.
U.S. crude stocks and gasoline inventories rose last week as refiners undergoing seasonal maintenance restarted units more slowly than expected to avoid even larger gasoline stock builds, the Energy Information Administration said on Wednesday.
The U.S. on Tuesday imposed a form of sanctions on Myanma Oil and Gas Enterprise (MOGE), the U.S. Treasury Department said, but stopped short of imposing full blocking sanctions on the ruling junta’s main source of foreign revenue.
Source: Reuters (Reporting by Muyu Xu; Editing by Sohini Goswami)