Middle East Crude-Benchmarks steady; ESPO premium hits 5-month high

Middle East crude benchmark Dubai differential was unchanged on Tuesday

  

SINGAPORE- Middle East crude benchmark Dubai differential was unchanged on Tuesday, while Oman differential dipped.

Russia's Surgutneftegaz sold three cargoes of ESPO blend crude, a China-focused grade, at around $3.2-$3.3 a barrel above Dubai quotes to trading house Mercuria via its first spot tender, traders said.

The spot premium level was the highest since December last year for the grade, Refinitiv Eikon data showed, as China's refining margins have shown improvement. 

Surgut issued a second tender closing later on Tuesday to sell three more ESPO crude cargoes loading over July 9-16, July 12-19 and July 16-23.

Rongsheng Petrochemical and CPC closed their crude purchase tenders on Tuesday. The results were not yet clear.

In the market-on-close price assessment process, Unipec declared one July-loading Dubai crude cargo to Vitol and one July-loading Oman crude cargo to Total.

Total further raised its bids for Upper Zakum and al-Shaheen both to spot premiums of $1.25 a barrel to Dubai quotes, from premiums of $1.1 in bids it placed on Monday

NEWS

U.S. oil output from seven major shale formations is expected to climb by 26,000 barrels per day (bpd) in June to 7.73 million bpd, the first rise in three months, the U.S. Energy Information Administration said in a monthly forecast on Monday. 

The top U.S. fuel pipeline operator said its lines were fully operational on Monday, but it will take some time for supplies to recover fully from a cyberattack that left thousands of gas stations without fuel.

Royal Dutch Shell shareholders overwhelmingly supported the company's energy transition strategy in a vote at its annual general meeting, the company said on Tuesday. 

Finland, one of the major buyers of Russian oil, has been gradually decreasing its purchases of Urals crude as the nation turns from fossil fuels to "green" energy, traders said and Refinitiv Eikon data showed. 

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


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