Middle East crude benchmarks Oman, Dubai and Murban eased on Monday, following a sharp rally in the previous week driven by strong demand amid U.S. sanctions on Russia.
The Biden administration announced tougher sanctions targeting Russian oil producers and tankers, prompting buyers in China and India to seek alternatives.
The market is now anxiously waiting possible new policies from U.S. President-elect Donald Trump, who will be inaugurated later on Monday.
Thailand’s state oil and gas firm PTT PTT bought two March-loading Murban crude cargoes, one at a premium of just below $5 a barrel and the other just above $5 to Dubai quotes on behalf of Thai refiner IRPC via a tender, traders said.
SINGAPORE CASH DEALS
Cash Dubai’s premium to swaps fell 22 cents to $4.85 a barrel.
NEWS
China’s crude oil imports from top supplier Russia were up 1% in 2024 to a record high versus 2023, while purchases from Saudi Arabia dropped 9%, data showed on Monday, as refiners chased discounted Russian supplies to cope with weakened margins.
Six Russian oil tankers still under construction by Russia’s Zvezda shipyard were included in U.S. sanctions imposed last week, the first time Washington is known to have banned tankers before they even set sail, much less carried sanctioned cargo.
Libya needs between $3 billion and $4 billion to reach an oil production rate of 1.6 million barrels per day (bpd), the acting oil and gas minister, Khalifa Abdulsadek, told Reuters on Saturday, adding that a new license bidding round is expected to be approved by the cabinet before the end of January.
A group of Republican-led states filed a lawsuit on Friday challenging a ban announced by outgoing Democratic U.S. President Joe Bidenearlier this month on new offshore oil and gas development along most U.S. coastlines.
Source: Reuters