Middle East Crude-Benchmarks slip; Vitol delivers 4th cargo

Middle East crude benchmarks Oman and Dubai slipped on Wednesday

  

SINGAPORE- Middle East crude benchmarks Oman and Dubai slipped on Wednesday, while Vitol will deliver its fourth Upper Zakum crude cargo on Platts window.

Medium-sour grades remained in discount territory in the spot market amid expectations of further reduction in official selling prices (OSPs) next month that would continue to make long-term supplies more competitive, traders said.

November-loading Banoco Arab Medium crude has traded at discounts of about 50 cents a barrel to its OSP while October-loading Basra Light is valued at a discount of about 30 cents to its OSP, traders said.

Asia-Pacific sweet grades stayed firm on tighter Kimanis supplies. 

Petroleum Brunei sold its Kimanis cargo loading on Nov. 12-16 to Ampol at a premium of 40 cents to its OSP, traders said.

PV Oil has sold its November-loading Dai Hung crude at a premium of just above $2 a barrel to dated Brent to Vitol, traders said.

REFINERY

Kuwait National Petroleum Co (KNPC) said on Tuesday it successfully started full operation of an environmentally friendly project to expand refining capacity and produce fuel that generates lower emissions and less pollution, the state news agency reported.

NEWS

OPEC and its allies struggled again to pump enough oil in August to meet global demand as it recovers from the coronavirus pandemic, potentially adding to upward pressures on oil prices. 

Top state refiners Sinopec Corp, PetroChina and leading private chemical giants like Hengli Petrochemical and Zhejiang Petrochemical Corp are set to join the country's first state oil reserve auction on Friday, company and trading sources said. 

Energy executives gathered in Dubai on Tuesday for the first time since the COVID-19 pandemic started, but despite being upbeat on economic recovery, they were concerned about another headwind: a global gas price spike. 

ConocoPhillips Chief Executive Ryan Lance on Monday doubled down on U.S. shale and the world's continued demand for oil with his second blockbuster acquisition in less than a year. 

The Philippines' Department of Energy said on Wednesday it has issued a circular to establish state-owned reserves of crude oil, finished petroleum products and biofuels, which can be tapped if there are supply disruptions in the global market. 

(Reporting by Florence Tan; Editing by Shailesh Kuber) ((Florence.Tan@thomsonreuters.com; Reuters Messaging: florence.tan.thomsonreuters.com@reuters.net))


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