Middle East crude benchmark Oman dipped, while Dubai stayed steady on Tuesday despite Saudi Arabia announcing it would extend its additional output cuts.

Saudi Arabia said on Monday it would extend its voluntary oil output cut of one million barrels per day (bpd) for another month to include August, adding it could be extended further.

Shortly after the Saudi announcement, Russian Deputy Prime Minister Alexander Novak said Moscow would cut its oil exports by 500,000 barrels per day in August.

Several oil traders said the extended output reduction from Saudi Arabia was anticipated, while the actual supply cuts from Russia needed to be watched.

“Now we can expect that Saudi Aramco will keep its August official selling prices (OSPs) at an expensive level,” said a Singapore-based trader.

Saudi crude OSPs are usually released around the fifth of each month. A Reuters survey before Saudi Arabia’s announcement on Monday showed that Asian refiners were expecting a 50 cents cut of Arab Light, Saudi Arabia’s flagship crude, for August.

NEWS

Kazakhstan’s oil output fell to 218,900 metric tons on Monday from 252,600 a day earlier as the country’s western regions, where oil fields are concentrated, were hit by a power outage, energy ministry data showed on Tuesday.

India bought 60% of all Russian Urals oil exports in June with strong demand from all refiners, while shipments to China dropped to just 7% as independent refiners slowed buying, trading sources and Refinitiv Eikon data showed.

The Trans Mountain pipeline expansion (TMX) was meant to unlock Asian markets for Canadian oil, but analysts and traders said those barrels now will probably land on the U.S. West Coast as Asia gobbles up Russian oil that is cheaper due to sanctions from Western countries after Moscow’s invasion of Ukraine.
Source: Reuters (Reporting by Muyu Xu; Editing by Alexander Smith)