Middle East crude benchmarks Oman, Dubai and Murban extended gains on Thursday, amid better buying appetite encouraged by a recent drop in global oil prices.

Oil prices retreated nearly 3% on Thursday as fears of a deepening U.S.-China trade war and possible recession eclipsed earlier relief created by President Donald Trump’s announced 90-day pause on sweeping tariffs against most countries.

The retreat followed a volatile session on Wednesday, when crude benchmarks, which had tumbled as much as 7% earlier in the day, ended around 4% higher following Trump’s announcement of a tariff pause.

Meanwhile, market is awaiting Saudi Arabia’s May crude allocation for China as an indicator of demand from the world’s top oil importer.

SINGAPORE CASH DEALS
Cash Dubai’s premium to swaps rose 24 cents to $1.64 a barrel.

PetroChina will deliver a June-loading Upper Zakum crude cargo to Vitol and a June-loading Oman crude cargo to Gunvor following the deals.

NEWS
China’s imports of Iranian oil surged in March as buyers stocked up amid worries that further U.S. sanctions on Tehran could tighten supplies, traders and analysts said.

Many buyers of Venezuelan oil have resumed loading crude onto tankers after a week-long hiatus at the country’s ports after the U.S. applied tariffs that President Donald Trump imposed on importers of the OPEC nation’s oil, according to shipping data and documents.

U.S. refiners are not planning to make big-ticket investments to process more domestic crude and less oil from top suppliers Canada and Mexico, industry sources and analysts said, an obstacle to President Trump’s plan to boost oil output.

U.S. President Donald Trump on Wednesday signed an executive order that aims to boost energy production by automatically cutting “outdated regulations,” the White House said.
Source: Reuters