Middle East crude benchmark spot premiums of Oman, Dubai and Murban eased on Friday and declined on weekly basis, tracking a slump in oil prices.
Oil prices were on track for their second weekly loss due to investor concerns around the escalating trade war between the U.S. and China.
Saudi Arabia’s crude oil supply to China will surge in May from the month before as a sharp price cut by the kingdom boosts demand, sources said on Friday.
State oil firm Saudi Aramco 2222 will ship about 48 million barrels to China in May, a tally of allocations to Chinese refiners showed, up from April’s 35.5 million barrels.
The figure marks the highest since at least 2024 and the first increase in Aramco’s allocation to China since the beginning of this year, according to Reuters data.
Chinese state major Sinopec 600028, China National Offshore Oil Corp (CNOOC) and private refiner Shenghong Petrochemical will all be lifting more Saudi crude in May, the sources said.
ASIA-PACIFIC CRUDE:
India’s ONGC Videsh offers to sell 600,000 barrels crude for May, the tender will close on April 17.
SINGAPORE CASH DEALS
Cash Dubai’s premium to swaps fell 15 cents to $1.49 a barrel.
NEWS
The Trump administration imposed sanctions on Iranian oil trading networks on Thursday, including on a China-based crude oil storage terminal linked via a pipeline to an independent refinery, just days before talks between the U.S. and Iran.
Energy group BP BP. expects first-quarter gas marketing and trading earnings to be “weak” while net debt will rise, the company said on Thursday, sending its shares down in early trading.
Oil-dependent governments are coming under pressure from the lowest crude prices since the COVID-19 pandemic, with officials preparing policy responses for a drop in revenue such as issuing more debt and reducing spending.
Tariffs are clouding the global economic outlook and could weigh heavily on oil prices in the months ahead, the U.S. Energy Information Administration (EIA) said on Thursday as it lowered its oil demand forecasts through 2026.
Source: Reuters