Middle East Crude-Benchmarks cool; more regional crude trades emerge
Middle East crude benchmarks eased on Monday, paring back some of last Friday’s gains, though a tighter supply outlook and Chinese demand recovery continued to provide a floor to prices.
Cash Dubai’s premium to swaps fell 20 cents to $2.25 a barrel, while Oman’s premium dipped 17 cents to $2.24 a barrel. Meanwhile, Murban’s premium edged lower at $3.47 a barrel.
Spot premiums for Vietnamese crude loading in November rose by about $1 a barrel from the previous month amid strong margins for middle distillates, traders said.
PV Oil sold a cargo of November-loading Chim Sao crude to Binh Son Refinery at more than $9 a barrel above dated Brent, they said.
The Vietnamese state oil marketer also sold November-loading Su Tu Den crude to Vitol at a premium of more than $7 above dated Brent, the traders said.
Separately, Taiwan’s CPC is seeking sweet crude for December arrival. The tender closes on Sept. 19 with validity until Sept. 20.
Рrices for Russia’s Far East ESPO Blend crude oil loading from the port of Kozmino in October have firmed to a premium of more than 50 cents against ICE Brent on a delivery basis in Chinese ports, several traders familiar with the matter said.
This means the price has climbed back to levels seen prior to sanctions and a price cap on Russian oil.
At least three deals for October-loading cargoes of ESPO Blend were done at a premium to ICE Brent of 30 to 60 cents per barrel, compared with a discount of $1-2 per barrel for cargoes loading early in September and August, the traders said.
SINGAPORE CASH DEALS
Cash Dubai’s premium to swaps fell 20 cents to $2.25 a barrel.
Meanwhile, EXTAP delivered a cargo of November Upper Zakum crude to Gunvor.
China’s diesel exports in August surged from a year earlier and have nearly tripled so far in 2023 compared to the same time a year ago, data showed on Monday, as refiners take advantage of strong regional refining margins to ship fuel overseas.
India’s government has increased the windfall tax on petroleum crude to 10,000 rupees per tonne from 6,700 rupees per tonne, according to a government notification on Friday. The increase will come into effect from Sept. 16.
Money managers raised their net long U.S. crude futures and options positions in the week to Sept. 12, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.
Source: Reuters (Reporting by Jeslyn Lerh and Florence Tan; Editing by Krishna Chandra Eluri)