Middle East crude benchmarks Oman, Dubai and Murban extended losses on Tuesday as markets watched for progress on the resumption of Iraqi oil exports, which could reduce supply tightness for sour crude.

Iraq’s oil minister Hayan Abdel-Ghani arrived in the Turkish capital Ankara to discuss several issues including resuming oil exports through the Ceyhan oil terminal, a source in the minister’s office told Reuters on Monday.

Turkey halted Iraq’s 450,000 barrels per day (bpd) of exports through the northern Iraq-Turkey pipeline on March 25 after an arbitration ruling by the International Chamber of Commerce (ICC).

Middle Eastern crude prices were also pressured by a narrower Brent-Dubai spread, the lowest in a month, which could prompt Asian refiners to haul more oil from further afield regions.

For the spot market, traders continued to change hands of October-loading cargoes. Thailand’s IRPC has likely bought two Murban cargoes at FOB prices of around $2.8 a barrel over the Dubai quotes.

Taiwan’s Formosa has likely bought 2 million barrels of Oman crude for November delivery.

SINGAPORE CASH DEALS

Cash Dubai’s premium to swaps fell 12 cents to $1.87 a barrel.

Glencore will deliver one October al-Shaheen crude each to Vitol and Trafigura following the trades. It will also deliver one October Upper Zakum crude to BP.

NEWS

India’s July crude oil imports from Russia dipped for the first time in nine months, while inbound shipments from Saudi Arabia tumbled to their lowest in 2-1/2 years following OPEC+ cuts, tanker data from trade and industry sources showed.

Container shippers are ordering vessels powered by methanol to reduce greenhouse gas emissions, but it will take years for renewable methanol output to meet demand and for costs to fall, industry executives said.

Privately controlled Chinese refining and petrochemical manufacturer Hengli Group said on Tuesday that Sinochem Group and itself were winding up their Singapore-based joint venture Hengli Oilchem due to business and strategic considerations.

Norway’s natural gas output rose in July from the previous month but lagged an official forecast, while crude oil narrowly missed expectations, the Norwegian Petroleum Directorate (NPD) said on Tuesday.
Source: Reuters (Reporting by Muyu Xu; Editing by Sonia Cheema)