Qatar Energy slashed the price for term cargoes of al-Shaheen crude oil loading in January 2024 to a four-month low, trade sources said on Thursday, mirroring weaker benchmark oil prices prompted by market concerns about sluggish demand.

The January price was trimmed to about $1.75 a barrel above the Dubai quotes, touching its lowest level since September and down from December’s $3.25 a barrel.

Spot premiums of Middle Eastern crude fell this month, weighed by thinning refinery margins and concerns over softer demand from China, the world’s top crude importer, after refiners in the countryeased run rates.

But oil prices remain supported by the lingering geopolitical tensions and the extension of voluntary output cuts from Saudi Arabia and Russia.

The term price was decided after Qatar Energy sold three al-shaheen crude cargoes for January-loading via its monthly tender.

ExxonMobil, PetroChina and Shell have purchased the three cargoes at a price range of $1.58 to $1.77 a barrel above the Dubai quotes. The cargoes are to load during Jan.3-4,18-19 and 28-29.

There are a total of about 16 cargoes of al-Shaheen crude available for trade for January, steady from 17 cargoes in the prior month, trading sources said.
Source: Reuters (Reporting by Muyu Xu; editing by Jason Neely, Alexandra Hudson)