Middle East Crude-Benchmarks dip; Malaysian grade weakens to spot discount

Middle East crude benchmarks Oman and Dubai weakened for a third straight session

  

SINGAPORE- Middle East crude benchmarks Oman and Dubai weakened for a third straight session, as India's top state oil refiners reduced processing runs and crude imports due to the country's COVID-19 crisis, weighing on sentiment and demand outlook. 

Saudi Arabia, the world's top crude oil exporter, will supply full volumes of crude to most Asian refiners in June, sources said.

Qatar Petroleum (QP) issued its monthly tender to sell three cargoes of al-Shaheen crude, loading July 1-2, July 26-27 and July 28-29, and one July-loading cargo each of Qatar Marine and Qatar Land. The tender will close next Monday.

QP also offered July-loading Deodorized Field Condensate (DFC) and Low Sulphur Condensate (LSC) via a monthly tender closing next Tuesday.

Bahrain's Bapco offered one July-loading cargo of Abu Safah crude via a tender closing on Wednesday with bids valid till Friday.

ONGC closed a spot tender selling one Russian Sokol crude cargo, loading July 2-8, with bids valid till later on Tuesday.

OSPs

Kuwait has set the June official selling prices (OSPs) for Kuwait Export Crude (KEC) and Kuwait Super Light Crude (KSLC) at $1.15 per barrel above the average of DME Oman and Platts Dubai quotes for Asian refiners, down 20 cents from the previous month, a pricing document showed.

ASIA PACIFIC CRUDE

Petro Brunei sold two cargoes of Malaysian Kimanis crude at spot discounts of around 20-50 cents to OSP via a Monday tender, traders said.

REFINERY

Indian Oil Corp, the country's biggest refiner, has reduced runs to an average of between 85% and 88% of processing capacity, a company official said. 

State-run Bharat Petroleum Corp has cut its crude imports by 1 million barrels in May and will reduce purchases by 2 million barrels in June, a company official said.

NEWS

Traders booked at least four tankers to store refined oil products off the U.S. Gulf Coast refining hub following a cyber attack that knocked out the top U.S. pipeline, shipping data showed on Tuesday. 

Russia's embassy in the United States on Tuesday rejected speculation that Moscow had any responsibility for a ransomware cyberattack that has disrupted activity at the biggest U.S. gasoline pipeline. 

Venezuelan state oil company PDVSA would need $58 billion in investment to revive its crude production to the levels of 1998 before ex-President Hugo Chavez came to power, equivalent to 3.4 million barrels per day (bpd), a document seen by Reuters shows. 

(Reporting By Shu Zhang; Editing by Amy Caren Daniel) ((shu.zhang@thomsonreuters.com; +65-6870-3549; Reuters Messaging: Twitter @shuzhang4)) ))

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