Middle East crude benchmarks Oman, Dubai and Murban rose on Wednesday amid expectationsof supply tightness for sour crude, following the extended output cut from Saudi Arabia and a broader OPEC+ supply reduction.
Prices for sour crude oil climbed globally this month after top exporter Saudi Arabia hiked prices and expanded production cuts of higher-sulfur oil, in the first sign its efforts to prop up global prices are having an impact.
Price for medium sour crude Urals from Russia has increased to $59.98 a barrel on the free-on-board (FOB) basis at Novorossiisk port on Tuesday, according to commodity price reporting agency Argus Media, approaching the pricecap of $60 a barrel imposed by the Group of Seven nations.
Companies involved in trading and transporting Urals crude can still access western financial services, ships and insurance so long as the prices do not exceed the price cap.
The market is closely watching Urals prices as the movement of the crude could be impeded, which would further tighten the global sour crude supply. India and China have emerged as thetop buyers of Urals after the Ukraine crisis.
For tenders, Qatar Energy is seeking to sell five September-loading al-Shaheen crude cargoes via a tender valid untilThursday. It is also looking to sell up to two cargoes each for Qatar Marine and Qatar Land crude, also for September loading.
OSP
The Abu Dhabi National Oil Company (ADNOC) set the August official selling price (OSP) of its benchmark Murban crude at $75.61 per barrel, the company said on Tuesday, up from a July OSP of $75.59/bbl.
August Umm Lulu price was set at $0.15 per barrel over the Murban OSP. While Das and Upper Zakum prices were at minus $0.70 and minus $0.60 per barrel against the Murban price.
SINGAPORE CASH DEALS
Cash Dubai’s premium to swaps gained 5 cents to $1.43 a barrel.
NEWS
Mexico’s state oil company Petroleos Mexicanos will see its crude output reduced by some 100,000 barrels per day (bpd) until the beginning of August after a massive fire on Friday at an offshore platform, a top company source said.
Azerbaijan’s oil output was at 15.2 million metric tons between January and June, country’s, energy minister Parviz Shahbazov said on Wednesday on Twitter, a decline of 8% from the year-earlier period.
Iraq will begin trading crude oil for Iranian gas to end the recurring issue of payment delays to Tehran due to the need for U.S. approval, Iraqi Prime Minister Mohammed Shia Sudani said on Tuesday.
A tanker carrying U.S. light sweet crude oil to the United Kingdom paused for 10 days in the Atlantic Ocean, changed destinations and was near Spain on Tuesday, ship tracking data showed.
Source: Reuters (Reporting by Muyu Xu; editing by Eileen Soreng)