Middle East crude benchmarks Oman and Dubai rose on Thursday following a jump in global crude futures on worries of escalating U.S.-Iran tensions.
Brent and U.S. West Texas Intermediate crude futures surged more than 4% on Wednesday’s close to hit their highest levels in two months after sources said the U.S. was preparing to evacuate its Iraqi embassy due to heightened security concerns in the Middle East.
Some of the price gains were reversed on Thursday as market participants assessed the U.S. decision.
Increased tension with Iran has raised the prospect of disruption to oil supplies. The sides are set to meet on Sunday.
In Asia, QatarEnergy offered five al-Shaheen crude cargoes for loading on Aug. 1-2, 2-3, 16-17, 24-25 and 26-27 via a tender to close on Monday, a trader said. It has also offered Qatar Marine and Qatar Land crude in separate tenders which will also be awarded early next week.
SINGAPORE CASH DEALS
Cash Dubai’s premium to swaps rose 9 cents to $1.32 a barrel.
NEWS
U.S. crude stocks fell last week as refining activity picked up, driving gasoline and distillate inventories higher, the Energy Information Administration (EIA) said on Wednesday.
Canada should not rush to sell the newly expanded Trans Mountain oil pipeline, its CEO, Mark Maki, said on Wednesday at a conference in Canada.
Mexico’s Hokchi Energy, frustrated by months of delayed payments for its oil and gas from state company Pemex, has sought to change its contract so it can do business directly with the company’s commercial arm, PMI Comercio Internacional, three sources familiar with the matter said.
Source: Reuters