SINGAPORE- Middle East crude benchmarks Oman and Dubai edged up on Wednesday, although they remain at much lower levels compared with earlier this month as trade thinned towards year end.

Traders are shifting their focus to the next round of official selling prices from Gulf producers.

 

SAUDI OSP PREVIEW

Top oil exporter Saudi Arabia may implement deep price cuts for the crude it sells to Asia in February after Middle East benchmarks and spot prices slumped this month, industry sources said. 

The producer is expected to cut official selling prices (OSPs) of all grades by more than $1 in February from the previous month, dropping prices back to their lowest levels in three to four months, a Reuters survey of seven crude buyers showed.

"The Dubai market structure is weaker and distillates cracks improved, which makes valuation for Arab Medium and Arab Heavy worse than light grades," one respondent said.

For Arab Heavy's OSP, all except one respondent expected price cuts of more than $1. Strong margins for low-sulphur fuel oil, which has hit the highest since February 2020, may support the price of the heavy crude, said the respondent who had forecast a 55-cent reduction.

NEWS

China's commodities markets suffered through a turbulent year in 2021 as an energy crunch and subsequent government intervention roiled the prices of products from thermal coal to urea, whipsawing them from record highs to monthly lows in weeks.

Russian Deputy Prime Minister Alexander Novak said on Wednesday that OPEC+ group of largest oil producers has resisted calls from Washington to boost output because it wants to provide the market with clear guidance and not deviate from policy.

Workers at Indonesia's PT Pertamina have cancelled a planned 10-day national strike after their trade union and the state energy firm's management agreed on labour terms, union president Arie Gumilar said in a statement on Wednesday. 

Mexico's Petroleos Mexicanos (Pemex) said on Tuesday it would drastically reduce planned crude exports next year as the state oil company works to meet the government's target of refining all of its oil domestically. 

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