Middle East crude benchmarks Oman, Dubai and Murban recovered on Wednesday, although their premiums to Dubai swaps stayed under $1 a barrel ahead of Saudi official selling price (OSP) announcement.

The world’s biggest oil exporter may cut prices for most crude grades it sells to Asia in July, the first reduction in five months.

REFINERY

Taiwan’s Formosa Petrochemical Corp 6505.TW, one of Asia’s largest refined products exporters, plans to cut run rates at its crude distillation units by 40,000 barrels per day (bpd) to 440,000 bpd in June, the company’s spokesperson said on Wednesday.

OPEC oil output rose in May, a Reuters survey found on Tuesday, as higher exports from Nigeria and Iraq offset the impact of ongoing voluntary supply cuts by some members agreed with the wider OPEC+ alliance.

A group of Democratic U.S. House lawmakers asked the Justice Department on Tuesday to probe allegations of antitrust behavior among U.S. oil producers and OPEC and said the two largest U.S. oil companies have been conspiring to keep fuel prices high.

India plans to set up a new shipping company to expand its fleet by at least 1,000 ships in the next decade, as Asia’s third-largest economy seeks a bigger chunk of revenue from surging trade, two government officials said.

The crude oil tanker market is grappling with an ageing fleet of vessels which need to be replaced, posing a challenge as shipyards are focused on building other types of ships, a top executive with commodity trader Trafigura said on Tuesday.

Indonesia’s Pertamina Patra Niaga is seeking more jet fuel for prompt June delivery in a spot purchase tender that closes tomorrow after trying to buy June gasoil in the past two days, two sources who received the tender document said on Wednesday.
Source: Reuters (Reporting by Florence Tan; Editing by Ravi Prakash Kumar)