Middle Eastern benchmarks Dubai and Murban declined on Wednesday amid demand concerns in top crude oil importer China, although the country beat expectations for industrial output and retail sales growth.
Spot premiums for Dubai and Murban drifted lower by 4 cents and 2 cents from the prior day to $1.50 a barrel and $1.49 a barrel over the Dubai quotes, respectively.
China’s oil refinery throughput in October eased from the previous month’s highs amid weakening industrial fuel demand and narrowing refining margins.
Total refinery throughput in the world’s second-largest oil consumer was 63.93 million metric tons, equivalent to 15.05 million barrels per day (bpd), a slight slowdown on September’s record 15.48 million bpd.
The market is also watching the impact of the U.S. probe into violations of the price cap for Russian crude on physical oil flows.
Several market participants and analysts, however, said it’s unlikely that big amounts of Russian oil will be removed from the market due to the probe.
OSP
Kuwait lowered the official selling price (OSP) for Kuwait Export Crude (KEC) to Asia in December by 20 cents from the prior month to $2.85 a barrel above the average of Oman/Dubai quotes, a price document reviewed by Reuters showed on Wednesday.
The producer raised the December Kuwait Super Light Crude (KSLC) OSP to $3.35 a barrel above Oman/Dubai quotes, 40 cents higher than the previous month.
SINGAPORE CASH DEALS
Cash Dubai’s premium to swaps dipped 4 cents to $1.50 a barrel.
Total will deliver one January-loading Murban cargo each to Equinor and Gunvor following the trades.
NEWS
Global oil markets are expected to be fairly balanced, with a slight surplus next year as demand and non-OPEC supply growth are exceeding expectations, the global head of research at Vitol, the world’s largest independent oil trader, said on Wednesday.
Denmark will be tasked with inspecting and potentially blocking Russian oil tankers sailing through its waters under new European Union plans, the Financial Times reported on Wednesday, as the West explores more ways of enforcing a price cap on Moscow’s crude.
World’s top exporter Saudi Arabia is expected to extend its additional voluntary supply cuts to at least the first quarter, if not the first half of 2024, Amrita Sen, co-founder of consultancy Energy Aspects said on Wednesday.
U.S. crude oil and gasoline inventories rose last week, while distillate stockpiles fell, according to market sources citing American Petroleum Institute figures on Tuesday.
Source: Reuters (Reporting by Muyu Xu; Editing by Varun H K)