Middle East Crude-Benchmarks up; Kimanis supply to rise in Nov

Middle East crude benchmarks Oman and Dubai rose on Tuesday

  

SINGAPORE- Middle East crude benchmarks Oman and Dubai rose on Tuesday, while Brent's discount to Dubai swaps widened.

The Brent-Dubai crude's Exchange of Futures for Swaps (EFS) DUB-EFS-1M was pegged at negative 20 cents at market close, from negative 5 cents a day earlier, Refinitiv data showed.

Surgut is closing a tender later on Tuesday to sell two cargoes of Russian ESPO Blend crude, loading Oct. 31-Nov. 5 and Nov. 2-8, via its first spot tender this month.

Malaysia's Kimanis crude oil exports will rise to nine cargoes in November, compared with eight in the previous month, two industry sources said on Tuesday. Petronas will market five of the cargoes, while Shell and ConocoPhillips will each market two cargoes. 

Two cargoes of Papua New Guinea's Kutubu crude are scheduled to load in November, a trade source said. Oil Search will market one cargo loading Nov. 5-9, and Exxon Mobil will market the other one loading Nov. 21-25.

REFINERY

China's crude oil throughput in August rose from a year ago, reaching the second-highest on record, as refineries worked to digest record imports brought in earlier this year. 

NEWS

The International Energy Agency (IEA) trimmed its 2020 oil demand forecast on Tuesday, citing caution about the pace of economic recovery from the pandemic.

The economic trauma caused by the COVID-19 pandemic has pushed energy companies to step up investment in renewables, hydrogen and other low carbon alternatives, but fossil fuels will be their dominant business for the foreseeable future, industry executives said. 

OPEC and allies such as Russia are unlikely to announce further curbs to oil output this week despite a price drop, sources told Reuters, and will extend the period for countries like Iraq and Nigeria to compensate for earlier overproduction. 

World oil demand will fall more steeply in 2020 than previously forecast and recover more slowly than expected next year, OPEC said on Monday, potentially making it harder for the group and its allies to support the market. urn:newsml:reuters.com:*:nL8N2GB39B

Major oil industry producers and traders are forecasting a bleak future for worldwide fuel demand, due to the pandemic's ongoing assault on the global economy.

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

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