Middle East crude benchmarks increased on Wednesday, with spot premiums of Oman and Murban reaching their highest in about one week, supported by a less-than-expected output hike by OPEC+.
Markets plunged this month due to fears of an accelerated hike for November, but sentiment improved after the Organization of the Petroleum Exporting Countries plus Russia and smaller producers said they would raise production from November by 137,000 barrels per day (bpd), matching October’s figure.
Oil prices posted similar gains on Wednesday.
SINGAPORE CASH DEALS
Cash Dubai’s premium to swaps rose 15 cents to 88 cents a barrel.
PetroChina will deliver a December-loading Dubai crude cargo to Mitsui following the deals.
NEWS
Traders offering Russian oil have begun asking Indian state refiners to pay in Chinese yuan, taking recent signs of improving relations between New Delhi and Beijing as a chance to simplify deals with Indian buyers, trade sources said.
Taiwan Area ,China’s state-owned oil and gas major CPC Corp has shut one of its crude units and derivative units at its Talin refinery for a planned overhaul until the second half of November, three people familiar with the matter said.
Iraq and Exxon Mobil XOM will sign an agreement on Wednesday to manage, develop and operate the Majnoon oil field in southern Iraq, three Iraqi official sources with knowledge of the matter told Reuters.
U.S. oil production is expected to hit a larger record this year than previously expected, the Energy Information Administration said on Tuesday, even as the agency warned that a glut of oil will weigh on prices in the months ahead.
Source: Reuters
