Middle East Crude-Benchmarks make strong start to September trade

Spot premiums for Middle East crude benchmarks Oman, Dubai and Murban kicked off September trade on a strong note, rising to about $2 a barrel to Dubai quotes.

The premiums are about $1 a barrel higher than last month’s average, Reuters data showed.

SINGAPORE CASH DEALS

Cash Dubai’s premium to swaps was at $2.03 a barrel, up from an average of 90 cents a barrel last month, supported by strong bids from Mitsui, Vitol, BP and North Petroleum International (NPI), the trading arm of Zhenhua Oil.

OPEC+ is set to proceed with a planned oil output increase from October as sluggish demand is countered by Libyan outages and pledged cuts by some members to compensate for overproduction, six sources from the producer group told Reuters.

Libya’s National Oil Corporation said on Friday that recent oilfield closures have caused the loss of about 63% of the country’s total oil production as conflict between rival eastern and western factions continues.

U.S. oil consumption in June dropped to seasonal lows last registered during the COVID-19 pandemic of 2020, U.S. Energy Information Administration data showed on Friday.

Analysts have lowered their 2024 oil price outlook owing to weak fuel demand from leading importer China and rising inventory levels as Saudi Arabia and OPEC+ allies prepare to ease some output cuts from October, a Reuters poll found.

Chinese state-backed oil and chemicals company Sinochem is planning to sell its 40% stake in a U.S. shale joint venture with oil major Exxon Mobil, valued upwards of $2 billion, people familiar with the matter told Reuters.
Source: Reuters (Reporting by Florence Tan, Editing by David Goodman)