SINGAPORE- Middle East crude benchmarks Oman and Dubai rose on Tuesday following a deep supply cut by Iraq.

The No. 2 OPEC producer has joined Saudi Arabia in reducing Basra crude supplies to Asian buyers in July, with cuts ranging from 30% to 100% of contract volumes, sources said. 

Traders will be eyeing the al-Shaheen tender results for price direction for medium and heavy grades whose supply is the tightest.

Murban's spot premium plunged to minus 80 cents a barrel against its OSP after BP sold an August-loading cargo to Total at that level on RIM.

Yet, Russian ESPO crude was sold at higher premiums of $3.50 to $3.70 a barrel to Dubai quotes in Surgutneftgaz's tender, supported by Chinese demand.

Exxon Mobil sold via a tender one Russian Sokol crude cargo for August loading at a premium of $3-$3.30 a barrel to Dubai quotes, lower than the previous sale by ONGC at a premium of$3.60.

 

ASIA-PACIFIC CRUDE:

Australian oil and gas producer Santos has offered its first ever Bayu Undan condensate cargo via a tender for loading in August, sources said. 

 

 

REFINERY

Japanese oil refiner Idemitsu Kosan Co has shut the 150,000 barrels per day (bpd) crude distillation unit (CDU) at its Hokkaido refinery in northern Japan on June 11 for regular maintenance, a company spokesman said on Tuesday. 

Japan's Cosmo Oil, a unit of Cosmo Energy Holdings Co Ltd, restarted the 102,000 barrels-per-day (bpd) No.2 crude distillation unit (CDU) at the Chiba refinery on June 13 after planned maintenance, a company spokesman said on Tuesday. 

 

NEWS

Oil demand is recovering from the greatest fall in its history in 2020, the International Energy Agency (IEA) said on Tuesday, but less flying due to coronavirus fears means the world will not return to pre-pandemic demand levels before 2022. 

U.S. oil output from seven major shale formations is expected to fall to near a two-year low of 7.63 million barrels per day by July, the U.S. Energy Information Administration said on Monday.

Iran could send two to three cargoes a month in regular gasoline sales to ally Venezuela, sources say, helping offload domestic oversupply but risking retaliation from U.S. President Donald Trump who has sanctions on both nations. 

(Reporting by Florence Tan; Editing by Aditya Soni) ((Florence.Tan@thomsonreuters.com; +65 6870 3497; Reuters Messaging: florence.tan.thomsonreuters.com@reuters.net))