Middle East crude benchmarks eased further on Wednesday as trading momentum thinned out, while refining sources expect Saudi Arabia to cut prices for July barrels to Asia.
Dubai’s premium dropped for a fourth trading session to a two-month low on Wednesday.
Meanwhile, Mercuria will be receiving another Upper Zakum cargo following trades on the Platts window.
INDIA CRUDE IMPORTS
India’s Reliance Industries has signed a one-year deal with Russia’s Rosneft to buy at least 3 million barrels of oil a month in roubles, four sources aware of the matter told Reuters.
The shift to rouble payments follows Russian President Vladimir Putin’s push for Moscow and its trading partners to find alternatives to the Western financial system to facilitate trade despite U.S. and European sanctions.
Separately, latest data showed that India’s April crude oil imports rose by 7% to 21.44 million metric tons year-on-year, boosted by firm demand and discounted Russian fuel.
Data from the Petroleum Planning and Analysis Cell’s website showed imports of crude oil products jumped 35% to 4.26 million tons on a yearly basis, while product exports increased over 9% to 4.78 million tons over the same period.
SINGAPORE CASH DEALS
Cash Dubai’s premium to swaps fell 6 cents to $1.39 a barrel, while Mercuria received one Upper Zakum crude cargo from PetroChina.
Mercuria has so far received 10 out of the 11 cargoes delivered on Platts window this month, including one cargo each of Murban and Dubai, two cargoes each of al-Shaheen and Oman, and four Upper Zakum cargoes.
NEWS
Hess shareholders on Tuesday approved the proposed $53 billion merger with Chevron that paves the way for the No. 2 U.S. oil company to gain a prize asset and a foothold in rival Exxon Mobil’s massive Guyana discoveries.
ConocoPhillips is in advanced talks to buy Marathon Oil in an all-stock deal that could value the Houston-based company at a little over its $15 billion market value, the Financial Times reported on Wednesday, citing people briefed on the matter.
Nigeria’s Dangote refinery is aiming for a dual listing on the London and Lagos bourses, a senior executive said on Tuesday.
Caspian Pipeline Consortium, which exports crude oil from Kazakhstan via a Russian Black Sea terminal, said on Wednesday its oil exports are expected to fall 7% short of a preliminary target due to lower loadings from a key field.
Houston-based investment fund Amos Global Energy is waiting for a license from the U.S. Treasury Department to complete the purchase of Chinese Sinopec’s stake in a shallow-water oil and gas project in Venezuela, the company said on Tuesday.
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Vijay Kishore)