Middle East Crude-Benchmarks weaken as trading slowed

Middle East Crude-Benchmarks weaken as trading slowed

​​The refiner typically buys Upper Zakum via such tenders. Qatar Marine for October loading traded at 45 to 50 cents a barrel below its official selling price (OSP), traders said. Light grades remained supported by firm demand in Asia

SINGAPORE: Middle East crude benchmarks Oman and Dubai weakened on Monday as trading slowed down after most refiners completed their purchases last week. CPC did not issue its monthly sour crude tender as it has sufficient term supplies to meet its demand, trade sources said.

The refiner typically buys Upper Zakum via such tenders. Qatar Marine for October loading traded at 45 to 50 cents a barrel below its official selling price (OSP), traders said. Light grades remained supported by firm demand in Asia.

Spot discounts for Das crude have narrowed trading at between 20 cents and 50 cents below its OSP, traders said. Petronas sold a Labuan crude cargo to Vitol at about $2.50 a barrel above dated Brent, traders said. Vitol may have sold the cargo on to an oil major at a premium of about $2, one of the traders said, although this could not be verified.

Taiwan’s CPC issued its sweet crude tender which will close on Tuesday. WINDOW Cash Dubai’s discount to swaps widened 9 cents to 81 cents a barrel. Energy firms shut 57.6 per cent, or 1.07 million barrels per day (bpd), of offshore crude oil production in the US Gulf of Mexico because of the twin threat from Hurricane Marco and Tropical Storm Laura, the US government said on Sunday.

Iraq’s oil minister said on Sunday that his country can produce five million barrels per day (bpd) of crude oil, and could reach seven million bpd by 2025, state news agency reported.

The US oil and natural rig count increased this week for the first time since March, with energy firms adding the most oil rigs in seven months, as shale producers start drilling again now that crude prices have recovered from historic lows.

Exxon Mobil Corp is limiting output at its flagship offshore project in Guyana to 100,000 barrels-per-day (bpd) due to more issues with the reinjection of natural gas, the South American country’s environmental regulator said on Friday.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/middle-east-crude-benchmarks-weaken-as-trading-slowed/77719899

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