Middle East Crude-India places orders for Iranian oil
The Middle East crude benchmarks were mixed on Monday with DME Oman’s premium to Dubai swaps easing while cash Dubai’s premium to swaps edged higher.
* Two Indian companies have placed orders to buy Iranian oil in November, oil minister Dharmendra Pradhan said on Monday, adding that India does not yet know if it will be granted a waiver from U.S. sanctions on Iran.
India, the world’s third-biggest oil importer, will buy 9 million barrels of Iranian oil in November, Reuters reported on Friday, citing two industry sources. Indian Oil Corp will lift 6 million barrels of Iranian oil and Mangalore Refinery and Petrochemicals Ltd 3 million barrels, a source told Reuters earlier.
India was discussing its options to buy Iranian oil with all authorities, Pradhan said.
U.S. sanctions on Iranian oil purchases are due to take effect on Nov. 4.
* Separately, India’s MRPL cancelled two separate tenders seeking crude for delivery in November and December and is expected to re-issue the tenders, an industry source said.
* India’s ONGC has offered a Sokol cargo for loading over Dec. 6 to 12 in a tender that closes on Oct. 9 and is valid until Oct. 10, industry sources said.
It last sold a Sokol cargo for loading in late November at a premium of $5.80 to $5.90 a barrel to Dubai quotes to Chevron, they said.
WINDOW: Cash Dubai’s premium to swaps edged higher by 2 cents to $1.48 a barrel. Six Cash Dubai partials traded on Monday with Shell snapping up five of them, industry sources said. Seller-Buyer Price
($) Totsa-Shell 81.65 Lukoil-Shell 81.60 Gunvor-PDCL 81.60 Totsa-Shell 81.59 Reliance-Shell 81.59 Reliance-Shell 81.59
CURRENT PREV SESSION DME OMAN 82.43 84.32 DME OMAN DIFF TO DUBAI 2.32 2.53 CASH DUBAI 81.59 83.25
* The oil market is balanced in terms of supply and demand, Qatar’s Energy Minister Mohammed al-Sada said on Sunday. urn:newsml:reuters.com:*:nL8N1WN0K4
“Geopolitical changes” are the reason for the recent rise in crude prices, the state-run Qatar News Agency quoted him as saying.
* The U.S. oil drilling rig count fell for a third consecutive week even though crude prices hit four-year highs this week, as rising costs and pipeline bottlenecks in the nation’s largest oil field have hindered new drilling since June.
* Tropical Storm Michael battered parts of Mexico and Cuba with powerful winds and drenching rains on Sunday as it strengthened in the Caribbean on a path that could see it slam into the U.S. Gulf Coast later this week with hurricane force, officials said.
* State energy giant Abu Dhabi National Oil Company (ADNOC) on Monday signed a strategic partnership agreement with Baker Hughes, allowing the world’s second-largest services company to buy a 5 percent stake in ADNOC’s drilling unit.
* Bioenergy from liquid biofuels and biogas will lead growth in renewable energy consumption to 2023, due to its rising use in the heating and transport sectors, according to the International Energy Agency (IEA).
For crude prices, oil product cracks and refining margins, please click on the RICs below.
Brent BRENTSGMc1 Dubai DUBSGSWMc2 DME Oman 1OQc1 Brent/Dubai EFS DUB-EFS-1M
PRODUCT CRACKS Fuel oil crack FO180SGCKMc1 Gasoil crack GOSGCKMc1 Naphtha crack NAFOBSGCKMc1 Complex refining margins REF/MARGIN1
Source: Reuters(Reporting by Jessica Jaganathan; Editing by Gopakumar Warrier)