Middle East Crude-Benchmarks rise ahead of OPEC+ meeting

Middle East crude benchmarks Oman and Dubai rose on Tuesday

  

SINGAPORE- Middle East crude benchmarks Oman and Dubai rose on Tuesday, tracking a surge in global oil futures. 

OPEC+ is likely to stick to the existing pace of gradually easing oil supply curbs at a meeting on Tuesday, three OPEC sources said, as producers balance expectations of a recovery in demand against a possible increase in Iranian supply. 

Top oil exporter Saudi Arabia is expected to slightly increase its July official selling price (OSP) of Arab Light crude for Asia, a Reuters survey showed.

But weakness in Asia's refining margins, in particular for fuel oil, is expected to bring cuts in July OSPs for heavier Saudi crude grades.

India's MRPL is seeking 650,000 barrels of spot crude via a tender closing on Thursday with bids valid till Friday.

ASIA PACIFIC CRUDE

The official selling price (OSP) of a basket of May-loading Malaysian crude oil grades has been set at $70.80 a barrel, state oil company Petronas said in a pricing document released on Tuesday. 

REFINERY

Top Asian refiner Sinopec Corp said on Tuesday it had started a 5.17 billion yuan ($811 million) refinery upgrade at a subsidiary plant in eastern China that aims to produce cleaner fuels and boost output of higher-value chemicals. 

NEWS

Kuwait's oil minister said on Tuesday global markets have been able to absorb the gradual oil production increases introduced by the Organization of Petroleum Producing Countries (OPEC) and its allies in May, state-run KUNA news reported. 

Oil prices will see a gradual uptick this year as economies shake off pandemic blues and weather headwinds from the coronavirus crisis in India and a potential return of Iranian supply, a Reuters poll showed on Tuesday. 

India's oil imports in April declined 3.7% from the previous months as state-run Hindustan Petroleum Corp did not receive oil for its Mumbai refinery, which was fully shut for revamp, data showed. 

Indian state refiners' daily gasoline and gasoil sales declined by about a fifth in May from a month earlier as lockdowns to curb the second deadly wave of COVID-19 hit industrial activities and consumption, preliminary data showed on Tuesday. 

Equinor, ExxonMobil and Petrogal Brasil said on Tuesday they would proceed with an $8 billion development of Brazil's Bacalhau oil discovery. 

BP and Eni are in talks over the future of their oil and gas assets in Algeria as the two groups increase efforts to refocus their businesses to tackle falling margins, rising debt and climate pressures, three sources said. 

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


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