Middle East Crude-Benchmarks slip after buyers get full Saudi allocation

Middle East crude benchmarks Oman and Dubai slipped on Monday

  

SINGAPORE- Middle East crude benchmarks Oman and Dubai slipped on Monday after Saudi Aramco notified at least seven buyers that it will supply full contractual volumes of crude oil in October.

Spot trading is expected to kick off this week after the allocation.

Qatar Petroleum will close on Tuesday its monthly al-Shaheen crude tender while ONGC will award a second Russian Sokol crude tender for November loading.

SAUDI ALLOCATION

Saudi Aramco has notified at least seven buyers across Asia that it would supply full contractual volumes of crude oil in October, though none of them asked for additional supplies despite deep price cuts, sources with knowledge of the matter said on Monday. 

Despite the deep price cuts, none of the seven buyers had asked for additional supplies, the sources said.

One source said spot crude prices remain attractive while another said they have purchased sufficient supplies from the spot market to meet their refining needs.

OSPs

Iran has set the official selling price (OSP) of its Iranian Light grade for its Asian buyers at $1.45 above the Oman/Dubai average for October, down $1.20 from the previous month, an industry source with direct knowledge of the matter said on Monday. 

ASIA PACIFIC CRUDE

Oil Search will market a Kutubu crude cargo for Nov. 13-17 loading while there are three Ichthys condensate cargoes. Inpex's cargoes will load on Nov. 10-14 and 20-24 while Total's cargo is for Nov. 30-Dec. 4.

PV Oil issued a tender to sell 400,000 barrels of Dai Hung, in addition to earlier tenders for Chim Sao and Su Tu Den.

NEWS

OPEC wil likely revise down its 2022 oil demand growth forecast on Monday, two OPEC+ sources said, as the spread of the Delta coronavirus variant puts the speed of a recovery in fuel use in doubt. 

Trading houses are rushing to supply Russian Urals crude to the United States where oil production was hammered by Hurricane Ida in August, three trading sources said on Friday.

Most of the nine Louisiana refineries shut by Hurricane Ida have restarted or were restarting on Friday, nearly two weeks after the powerful storm came ashore, a Reuters survey showed. 

China's Sinopec Corp announced on Monday it has completed its first liquefied natural gas (LNG) bunkering operation in Weihai, a major seaport in the eastern Shandong province. 

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


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