Middle East Crude-Dubai extends gains on Shell's purchases

DME Oman's premium to Dubai swaps held steady at $1.67 a barrel.

  

SINGAPORE- Middle East crude benchmarks stayed firm on Monday with cash Dubai's premium extending gains for a second session as Shell stepped up purchases on Platts window, traders said.

DME Oman's premium to Dubai swaps held steady at $1.67 a barrel.

Murban crude stayed under pressure as GS Caltex lowered its offer for a September-loading cargo to 35 cents a barrel below its official selling price (OSP), 10 cents down from the previous session.

Shell maintained its bid for a September-loading Upper Zakum cargo at 25 cents a barrel below its OSP.

TENDERS

ONGC has sold a Russian Sokol crude cargo loading on Sept. 1-7 to Itochu at $4.40 a barrel above Dubai quotes. The premium edged down from the $4.50-$4.70 posted for most recent trades for August-loading cargoes.

Qatar issued its monthly tender to sell low-sulphur condensate (LSC) for September loading. The tender will close on July 16 with bids valid until a day later.

For condensate, China's Fuhaichuang is still in talks for September arrival supplies while Pertamina will award its tender later this week.

REFINERY

China's fuel producers are making extended curbs to their output in the third quarter after supply from mammoth new refineries stoked an already-sizeable glut, potentially dragging on crude oil demand from the world's biggest importer of the commodity.

The planned closing of an oil refinery in Philadelphia damaged by a massive fire last month will reverse nearly two years of capacity gains at U.S. refineries, according to a Reuters analysis of government data.

The shutdown, which began last week and will continue through late August, will reduce overall U.S. refining capacity by about 2%, to 18.46 million bpd.

Venezuela's Amuay and Cardon refineries are halted following a blackout in the early morning hours, two oil industry sources with knowledge of the issue said on Sunday. 

NEWS

Iran said on Sunday it will shortly boost its uranium enrichment above a cap set by a landmark 2015 nuclear deal, prompting a warning 'to be careful' from U.S. President Donald Trump, who has pressured Tehran to renegotiate the pact. 

The UK-flagged supertanker Pacific Voyager that halted in the Gulf on Saturday is "safe and well," a British official told Reuters, after Iran dismissed reports its Revolutionary Guards had seized the vessel. 

OPEC oil output sank to a new five-year low in June as a rise in Saudi supply did not offset losses in Iran and Venezuela due to U.S. sanctions and other outages elsewhere in the group, a Reuters survey found.

The 14-member Organization of the Petroleum Exporting Countries pumped 29.60 million barrels per day (bpd) last month, the survey showed, down 170,000 bpd from May's revised figure and the lowest OPEC total since 2014.

Investment funds are placing their bets as the shipping sector prepares for new rules limiting sulphur emissions from ocean-going vessels. 

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


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