Middle East crude benchmarks Oman, Dubai and Murban extended their rally on Tuesday to over one-week highs, supported by healthy demand from Asia amid peak summer demand season and better refining margins.

Saudi Arabia, the world’s biggest oil exporter, may raise its August crude oil prices for buyers in Asia to the highest in four months, after spot prices surged during the Iran-Israel conflict and on robust summer fuel demand, trade sources said.

The August official selling price (OSP) for flagship Arab Light crude may increase by 50-80 cents to between $1.70 and $2 a barrel from the previous month, five sources from four refineries said in a Reuters survey.

Such a rise would place the August Arab Light OSP at the highest level since April, Reuters data showed.

The August OSPs for Arab Extra Light, Arab Medium and Arab Heavy crude are expected to rise 50-60 cents a barrel from July, the survey showed.

SINGAPORE CASH DEALS

Cash Dubai’s premium to swaps rose 17 cents to $2.90 a barrel.

NEWS

U.S. crude oil production hit a record 13.47 million barrels per day in April, up from 13.45 million bpd in March, according to data released by the Energy Information Administration as part of its Petroleum Supply Monthly series.

Analysts have marginally lifted their oil price forecasts after the flare-up of tensions in the Middle East, but rising OPEC+ supply and a tempered demand outlook continue to weigh on crude, a Reuters poll showed on Monday.

Norway’s Equinor EQNR and its partners have approved a 13 billion Norwegian crown ($1.29 billion) investment for the expansion of Johan Sverdrup, western Europe’s largest producing oilfield, the company said on Tuesday.

Chevron CVX will close its Aberdeen, Scotland office, the U.S. oil producer said on Monday, ending the company’s decades-long presence in the city as part of its ongoing restructuring.
Source: Reuters