Middle East crude benchmarks Oman, Dubai and Murban climbed on Monday as the market awaited Saudi Arabia and Russia to announce their supply plan in the upcoming months, with market participants widely expecting supply tightness to exacerbate.

Russia’s Deputy Prime Minister Alexander Novak told President Vladimir Putin last Thursday that Russia agreed with OPEC+ partners to reduce the export of oil and will announce the new main parameters this week.

Meanwhile, analysts and traders expected that Saudi Arabia will likely roll over a voluntary oil cut of 1 million barrels per day for a third consecutive month into October.

The market sees the fair price for oil at $72 to $88 per barrel, a senior official at global commodities trading firm Trafigura TRAFGF.UL said on Monday, adding that he sees risks to the upside.

OSP

The Abu Dhabi National Oil Company (ADNOC) has set the October official selling price (OSP) of its benchmark Murban crude at $87.28 per barrel, the company said on Sunday, up from a September OSP of $80.78/bbl.

SINGAPORE CASH DEALS

Cash Dubai’s premium to swaps rose 19 cents to $2.06 a barrel.

No trade was done at the Platts window.

NEWS

Global crude oil supplies are expected to improve in the next six to eight weeks because of refinery maintenance, although sour crude will stay tight, said Russell Hardy, chief executive of the world’s largest independent oil trader, Vitol.

The Group of Seven’s price cap on Russian oil is still effective in limiting Russia’s revenue and oil supplies, a senior U.S. Treasury official told the APPEC conference on Monday.

U.S. crude oil stocks have fallen to their lowest level this year and likely will shrink further, analysts said, as record demand, producer supply cuts, weaker futures and rising storage costs all point to increasing drawdowns.
Source: Reuters (Reporting by Muyu Xu; Editing by Janane Venkatraman)