Middle East crude benchmark Oman rose on Wednesday as the Israel-Hamas tension deepened just ahead of U.S. President Biden’s visit to the region, heightening the risk of a broader conflict and the stability of oil supply.

Spot premium for Oman was up 18 cents from the prior day to $3.1 a barrel over the Dubai quotes.

Oman crudewas also supported by trades in the Platts’ Dubai partial window. Two convergences were made on Wednesday, driving the total tally of Oman crude delivery to seven cargoes by far this month.

While the market keenly watched any signal of supply disruption from the Middle East, Saudi Aramco 2223.SE said it is able to ramp up oil production within weeks as global consumption is set to rise to a fresh record by year-end.

In tenders, Taiwan’s CPC sought to buy sweet crude for January-arrival.

CHINA
China’s oil refinery throughput in September hit a record daily rate, data showed on Wednesday, up 12% from a year earlier as refiners increased run rates to cater for strong demand for transport fuel over the Golden Week holiday and improving manufacturing.

SINGAPORE CASH DEALS
Cash Dubai’s premium to swaps dipped 4 cents to $2.95 a barrel.

PetroChina will deliver one December-loading Oman crude to Trafigura following the trades. Meanwhile, ExxonMobil will deliver one Oman crude to Vitol.

NEWS
Egypt’s Suez Canal Authority said it will raise the toll for oil tankers and other large vessels passing through the waterway by 15% effective Jan. 15.

U.S. crude oil and fuel stockpiles fell last week, according to market sources citing American Petroleum Institute figures on Tuesday.

Oil freight rates from Russia’s Baltic ports to India are up some 50% since last week as more shipowners quit the market after the first U.S. sanctions on shipowners carrying Russian crude priced above a G7 cap, three sources said on Tuesday.
Source: Reuters (Reporting by Muyu Xu; Editing by Varun H K)