Medium sour benchmark Dubai edged higher on Tuesday as the oil producer cartel raised global oil demand growth forecast and on concerns over potential tighter Russian oil flows after the U.S. probed into price cap violations.
OPEC on Monday said oil market fundamentals remained strong and blamed speculators for a drop in prices as it slightly raised its 2023 forecast for global oil demand growth and stuck to its relatively high 2024 prediction.
Meanwhile, the U.S. Treasury Department has sent notices to ship management companies requesting information on about 100 vessels it suspects of violating Western sanctions on Russian oil, according to a source who has seen the documents.
China and India are among the top buyers of Russian oil. A tougher implementation of the price cap may deter some shipping firms to continue moving Russian oil, which could lead to higher oil prices or even reduce some oil flows in the market.
The Kremlin said on Tuesday that Russia was acting in its own interests when asked about a probe by the United States into alleged violations of Western oil sanctions on Moscow.
In tenders, Qatar Energy issued tenders to sell January-loading crude oil cargoes, including three al-Shaheen cargoes, one cargo each of Qatar Land and Qatar Marine crude. The tender is set to close on Wednesday.
ASIAN REFINERIES
The Kuwait Integrated Petroleum Industries Company (KIPIC) said on Sunday that fuel and gas supply at its Al-Zour Refinery were subject to a “sudden interruption” due to a defect in one of its main valves that almost halted production operations.
The process to restart the refinery has already begun and it could take up to 10 days before production capacity returns to normal, KIPIC said in a statement.
SINGAPORE CASH DEALS
Cash Dubai’s premium to swaps rose 3 cents to $1.54 a barrel.
NEWS
The U.S. plans to buy 1.2 million barrels of oil to help replenish the Strategic Petroleum Reserve after it sold off the largest amount ever last year, the Energy Department said on Monday.
China’s CNOOC 0883.HK, 600938.SS has begun production at the first phase of its Bozhong 19-6 gas condensate field, according to a statement released by the company on Tuesday.
Oil output from Kazakhstan’s giant oilfield Tengiz, operated by Chevron-led CVX.N Tengizchevroil, will remain stable in 2024 from the 2023 plan, Kazakhstan’s energy ministry said on Tuesday.
Iraqi oil minister Hayan Abdel-Ghani expects to reach an agreement with the Kurdistan Regional Government (KRG) and foreign oil companies to resume oil production from the Kurdish region’s oilfields within three days, he said on Sunday.
Source: Reuters (Reporting by Muyu Xu; Editing by Shailesh Kuber)