Middle East Crude-Benchmarks flip to discounts on thin trade

Middle Eastern benchmarks Oman, Dubai and Murban on Wednesday flipped to discounts against Dubai quotes for the first time since October 2020, amidst thin trade and persistent demand worries.

Spot discounts for Oman and Murban were at 63 cents and 13 cents against the Dubai quotes, respectively, compared to premiums of 5 cents and 23 cents on Tuesday.

Qatar Energy has issued its monthly tender seeking to sell February-loading crude oil. The oil firm looks to sell two al-Shaheen cargoes, one each of Qatar Marine and Qatar Land crude.

The tender is set to close on Wednesday and be valid until Thursday.

OSP

Kuwait lowered the official selling price (OSP) for Kuwait Export Crude (KEC) to Asia in January by 75 cents compared to the prior month, to $2.10 a barrel above the average of Oman/Dubai quotes.

The producer also cut the January Kuwait Super Light Crude (KSLC) OSP to $2.45 a barrel above Oman/Dubai quotes, 90 cents higher than the previous month.

SINGAPORE CASH DEALS

Cash Dubai’s discount to swaps was at $0.65 per barrel.

NEWS

Representatives from nearly 200 countries agreed at the COP28 climate summit on Wednesday to begin reducing global consumption of fossil fuels to avert the worst of climate change, a first of its kind deal signaling the eventual end of the oil age.

Oil and gas companies operating in Norway are expected to invest 240 billion Norwegian crowns ($21.85 billion) in 2024, up from 220.5 billion in 2023, and more than previously expected, an industry group said on Wednesday.

Venezuela’s government foresees a 27% increase in its income from state-run oil company PDVSA next year, according to a document seen by Reuters, after a relaxation in U.S. sanctions and amid planned presidential elections and stagnant production.

The average price of Russian oil delivered to top buyer India in October rose to $84.20 per barrel, way above the $60 price cap set by the Group of Seven nations in December last year, preliminary Indian government data showed.
Source: Reuters (Reporting by Muyu Xu; Editing by Varun H K)