Middle Eastern crude benchmarks Oman and Dubai kicked off the March trading cycle with firm gains on Wednesday, finding support from the prospect that China’s fuel demand would pick up.

The market will start to trade May-loading Middle Eastern crude this month.

China’s manufacturing activity expanded at the fastest pace in more than a decade in February, an official index showed on Wednesday, which may prompt Beijing to set a higher economic growth target for 2023 and further boost oil demand.

OPEC

OPEC oil output rose in February led by a further recovery in Nigerian supply, a Reuters survey found on Tuesday, despite strong adherence by top producers to an agreement by the wider OPEC+ alliance to cut production to support the market.

The Organization of the Petroleum Exporting Countries (OPEC) has pumped 28.97 million barrels per day (bpd) this month, the survey found, up 150,000 bpd from January. Output is still down more than 700,000 bpd from September.

SINGAPORE CASH DEALS

No deal was done in the Platts window on Wednesday.

NEWS

Premiums of marine fuel, also known as bunkers, are set for a bumpy recovery in March in Singapore, the world’s largest bunkering port, as refuelling demand from the shipping sector has recently waned, multiple trade sources said.

U.S. crude oil production fell in December to 12.10 million barrels per day (bpd), its lowest since August 2022, Energy Information Administration (EIA) data showed on Tuesday.
Source: Reuters