Middle East crude benchmark Dubai on Monday kicked off this month’s trade on a weak note with BP and TotalEnergies as the main seller and buyer, respectively, on Platts window.
TotalEnergies, which has been snapping up cargoes for the past two straight months on the window, bought as much as 31 cargoes for loading in January, or 15.5 million barrels of crude last month.
SAUDI OSP PREVIEW
Saudi Arabia is expected to slash January official selling price (OSP) for flagship Arab Light by 70 to 90 cents a barrel from December to at least a four-year low, six sources at Asian refineries said in a Reuters survey, largely tracking a slump in Middle East benchmark prices last month.
Arab Extra Light’s OSP is expected to fall in line with Arab Light, while some respondents expect to see larger price reductions for heavier grades – Arab Medium and Arab Heavy – as fuel oil margins have weakened, the survey showed.
Still, the outcome of the OPEC+ meeting on Dec. 5 is expected to determine supply in early 2025 and may influence Saudi OSPs, traders said, with some expecting state oil giant Saudi Aramco to announce prices after the meeting is concluded.
SINGAPORE CASH DEALS
Cash Dubai’s premium to swaps was at 42 cents a barrel.
REFINERY
Formosa Petrochemical Corp is operating its refinery at a reduced rate of 410,000 barrels per day due to maintenance at its delayed coker unit (DCU) this month, its spokesperson KY Lin said on Monday.
Formosa operates a 540,000-barrels-per-day refinery complex in Mailiao and is one of the region’s largest refined products exporters.
The company has stopped operations at its delayed coker unit (DCU) for 20 days since Dec. 1 for maintenance, Lin told Reuters.
It also planned to shut two refining units for maintenance in March 2025, he added.
Formosa planned to shut its sulphur recovery unit (SRU) for 40 days and its No. 1 84,000-bpd residue fluid catalytic cracker (RFCC) for more than two months, Lin said.
NEWS
Oil prices could stall in 2025 as economic weakness in China clouds the demand picture and ample global supplies outweigh support from an expected delay to a planned OPEC+ output hike, a Reuters monthly poll showed on Friday.
Trafigura and three other defendants including a former board member go on trial over the alleged payment of bribes to an Angolan oil official for oil deals in a landmark case that opens on Monday.
Russia’s government lifted a temporary ban on the bulk of gasoline exports supplied by producers, while extending the restrictions for other exporters, such as independent traders and re-sellers, until Jan. 31, 2025, it said on Saturday.
Freight rates for Russian oil transportation are set to rise amid coming winter season and new sanctions against Russian fleet, three traders said on Friday.
Source: Reuters (Reporting by Florence Tan; Editing by Janane Venkatraman)