Middle East crude benchmark spot premiums of Oman, Dubai and Murban held firm on Wednesday, supported by good demand from Asia and higher August official selling prices by Saudi Arabia for Asia.

The market is awaiting Saudi’s August crude allocation for China, which is an indicator of demand from the world’s top oil importer.

Oil prices edged lower on Wednesday after rising to two-week highs in the previous session, weighed down by investors waiting for clarity on new U.S. tariffs and expectations of rising crude inventories in the United States.

SINGAPORE CASH DEALS

Cash Dubai’s premium to swaps rose 7 cents to $3.16 a barrel.

PetroChina will deliver two September-loading Upper Zakum crude cargoes following the deal, one to Gunvor and one to Vitol.

NEWS

S&P Global Platts said on Tuesday it was proposing to change the pricing mechanism for United Arab Emirates’ Murban crude in the Dubai oil benchmark from 2026 to better reflect market dynamics.

Britain’s insolvent Lindsey oil refinery has resumed fuel deliveries, a spokesperson for the Department for Energy Security and Net Zero (DESNZ) told Reuters on Tuesday, after a deal to continue short-term crude supply was reached last week.

Oil markets are absorbing OPEC+ production increases without building inventories, which means they are thirsty for more oil, United Arab Emirates’ Energy Minister Suhail al-Mazrouei said on Wednesday.

The Uganda National Oil Company (UNOC) is seeking a joint venture partner to help operate an exploration block in Uganda’s west, the firm’s spokesperson said on Wednesday.

Zinc contamination in the Mars crude oil stream pushed down demand for the flagship U.S. coastal crude, slashing its prices on Tuesday, six traders and an industry source said.
Source: Reuters