Middle East crude benchmarks fell below $80 a barrel on Tuesday, extending weakness into a fifth session, while market priced in an eventual return of output cuts by the oil producing group in the last quarter this year, traders said.

A mini OPEC+ ministerial meeting next month is unlikely to recommend changing the group’s output policy, including a plan to start unwinding one layer of oil output cuts from October, three sources told Reuters.

“Our view has not been changed by the recently announced compensation plans from OPEC+ overproducers. However, seasonally-lower demand could mean the planned unwinding in first-half of 2025 may be paused or even revised,” energy consultancy FGE said in a note.

SINGAPORE CASH DEALS

Cash Dubai’s premium to swaps rose 21 cents to $1.05 a barrel.

Two large oil tankers that collided and caught fire near Singapore earlier this month are afloat and anchored in Malaysian waters, with an investigation into the incident ongoing, Malaysia’s marine department said on Tuesday.

– Portfolio investors have soured on the outlook for petroleum prices as an anticipated large depletion of inventories during the third quarter has failed to materialise.

– Brazilian state-run oil company Petrobras said on Monday its crude oil production during the second quarter rose 2.6% from the year-ago period after it ramped up five oil platforms and started production in 12 wells.
Source: Reuters (Reporting by Mohi Narayan; Editing by Mrigank Dhaniwala)