Middle Eastern benchmarks Oman and Murban dropped on Wednesday as pressures from arbitrage cargoes remained amid the near parity Brent/Dubai spread and as the market awaited the OPEC+ group to set the output baseline for 2024.

Spot premium for light sour Murban fell to $1.43 a barrel over the Dubai quotes, its lowest level in six months.

Analysts from S&P Global Commodity Insights expect oil inventory to continue building up until the second quarter of 2024 even if the current supply cuts are extended.

Meanwhile, the head of the International Energy Agency’s (IEA) oil markets and industry division told Reuters on Tuesday that the global oil market will see a slight surplus of supply in 2024 even if the OPEC+ nations extend their cuts into next year.

SINGAPORE CASH DEALS

Cash Dubai’s premium to swaps rose 9 cents to $1.77 per barrel.

NEWS

Saudi Arabia, Russia and other members of OPEC are scheduled to meet in Vienna on Sunday and could make further changes to an agreement that already limits supply into 2024, according to analysts and OPEC+ sources, to support the market.

Russia will soon lift remaining restrictions on diesel fuel exports, Deputy Prime Minister Alexander Novak said on Wednesday speaking in the upper house of the parliament.

U.S. officials said on Tuesday seven energy companies have been impacted by an oil discharge near Main Pass Oil Gathering Co’s (MPOG) pipeline system in the Gulf of Mexico that is estimated to have released more than a million gallons of crude oil.
Source: Reuters (Reporting by Muyu Xu; Editing by Sonia Cheema)