Middle East crude benchmark spot premiums of Oman, Dubai and Murban drifted lower on Tuesday amid an outlook of rising supply and demand concerns.

The supply pressure mounted last week when eight OPEC+ countries agreed to advance their plan to phase out oil output cuts by increasing production by 411,000 barrels per day in May, triple the expected increase and around 0.4% of global supply.

Oil prices were up about 1% on Tuesday, rebounding from a near four-year low in the previous session on concerns that U.S. tariffs might lead to a global recession and depress demand, though analysts warned downside risks remain.

SINGAPORE CASH DEALS

Cash Dubai’s premium to swaps fell 3 cents to $1.25 a barrel.

PetroChina will deliver two June-loading Upper Zakum crude cargoes, one to Gunvor and one to Vitol following the deals.

NEWS

Brent crude futures and options contracts traded on the Intercontinental Exchange (ICE) hit record volumes on Friday, surpassing levels seen during the COVID-19 pandemic as investors braced for a global trade war and increased OPEC+ oil output.

OPEC oil output fell in March ahead of a scheduled production hike, a Reuters survey found, as Nigeria slowed deliveries to domestic refineries and Iranian and Venezuelan supply dropped on renewed U.S. attempts to curb the flows.

A sharp drop in global oil prices triggered by U.S. President Donald Trump’s tariffs poses a risk to the Russian economy, the state-run TASS news agency cited Elvira Nabiullina, the governor of Russia’s central bank, as saying on Tuesday.

The world’s top energy trader, Vitol, made a net profit of $8 billion to $8.5 billion in 2024, a steep drop from record highs of 2022 and 2023 but still exceeding rivals by a wide margin despite lower volatility, two industry sources familiar with the results said.
Source: Reuters