Middle East crude benchmarks were mixed on Friday with Dubai’s premium easing and Oman and Murban extending gains, as concerns about a wider Israel-Iran conflict that may disrupt exports from the Gulf underpinned prices.
There was no trade on Platts Dubai window due to a wide bid-offer gap.
Spot premiums for August-loading Oman and Murban climbed toward $4 a barrel to their highest levels in five months.
Meanwhile, Asian refiners have requested more term crude oil supplies loading in August and September from producers in the Middle East after spot premiums jumped, six trade sources said on Friday.
“We are receiving additional interest from our customers in Asia,” a source at a Middle East crude supplier said, adding that the requests are for cargoes loading in August and September.
A source at an Asian refiner said the official selling prices (OSPs) for Middle East crude are lower than spot levels, making it more economical to seek more term supplies.
Two sources at Indian refineries said they will be receiving more July-loading term crude supply from Middle East suppliers as they anticipate lower supplies from Russia.
It is not immediately clear if the producers will supply more oil, three sources said, although one of them pointed to rising output from the bloc.
SINGAPORE CASH DEALS
Cash Dubai’s premium to swaps fell 10 cents to $3.24 a barrel.
Iran is maintaining crude oil supply by loading tankers one at a time and moving floating oil storage much closer to China, two vessel tracking firms told Reuters, as the country seeks to keep a key source of revenue while under attack from Israel.
Iran could shut the Strait of Hormuz as a way of hitting back against its enemies, a senior lawmaker said on Thursday, though a second member of parliament said this would only happen if Tehran’s vital interests were endangered.
China’s imports of crude oil from Russia fell 5.9% in May from a year earlier to 8.38 million metric tons or 1.97 million barrels per day, Chinese customs data showed on Friday.
Russia’s top oil official said on Thursday that OPEC+ oil producers should proceed with plans to increase output, noting rising summer demand.
Norway’s Equinor EQNR said on Friday its Johan Castberg oilfield in the Arctic Barents Sea was producing at peak capacity of 220,000 barrels of oil per day.
Source: Reuters
