Middle East Crude – Dubai, Oman extend losses as selling pressure builds

Middle East crude benchmark Dubai and Oman extended declines from last week on Monday as selling pressure piled on in the Platts window, while physical trading for the month is winding down.

Most Asian refiners have covered their demand for April-loading crude while some traders are in London for International Energy week.

RUSSIA CRUDE

The U.S. has imposed sanctions on Russia’s leading tanker group Sovcomflot as Washington seeks to reduce Russia’s revenues from oil sales it can use to support the invasion of Ukraine, the Treasury Department said on Friday.

The Treasury’s Office of Foreign Asset Control also designated 14 crude oil tankers vessels as property in which Sovcomflot has an interest.

OFAC issued general licenses allowing the offloading of crude oil, or other cargoes, from the 14 vessels for 45 days, and allowing transactions with all other Sovcomflot tankers.

SINGAPORE CASH DEALS

Cash Dubai’s premium to swaps fell 6 cents to 90 cents a barrel.

NEWS

Red Sea shipping delays and OPEC+ supply cuts are tightening physical oil markets in Europe and Africa as well as the Brent crude market structure, lending further support to oil futures prices, according to traders, LSEG data and analysts.

Tank storage firm Vopak VOPA.AS said on Monday it will repurpose part of its Sebarok terminal in Singapore for clients to blend and store marine biofuel.

Qatar will raise natural gas production despite a recent steep drop in global prices, in a long-term bet on rising demand for the less polluting fuel in Europe and Asia.
Source: Reuters (Reporting by Florence Tan; Editing by Varun H K)