Middle East Crude-Benchmarks fall amid excess supplies

PUBLISHED: Fri, 26 Mar 2021 10:13:59 GMT
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SINGAPORE, March 26 (Reuters) – Middle East crude benchmarks Oman and Dubai fell on Friday, with Dubai’s premium slipping under $1 a barrel for the first time in just over a week, as excess supplies from other regions weigh on the market. Spot differentials for competing cargoes from Europe, Africa and the United States have fallen amid weak demand from Asia, particularly China, for fresh crude supplies. Ahead of the launch of Murban crude futures on IFAD on Monday, ADNOC has deepened allocation cuts for June-loading crude to Asian buyers. More details emerged on Gazprom neft’s ESPO crude tender for May 1-10 loading. The cargo was sold at $1.30-$1.40 a barrel above Dubai quotes to an unknown buyer, traders said. Russia’s ESPO Blend crude oil <ESPO-DUB> exports from the Far Eastern port of Kozmino have been set at 2.74 million tonnes for May, compared with 2.82 million tonnes in April, according to the schedule seen by Reuters on Friday. Separately, Pertamina has issued a tender seeking sweet crude for June delivery, which will close on March 30 with offers valid until April 1. WINDOW Cash Dubai’s premium to swaps fell 42 cents to 98 cents a barrel. Seller-Buyer Price Unipec-PetroChina 62.05 Unipec-PetroChina 62.05 Unipec-PetroChina 62.05 Unipec-PetroChina (Oman) 62.20 PRICES ($/BBL) CURRENT PREV SESSION DME OMAN 62.24 62.21 DME OMAN DIFF TO DUBAI 1.17 1.21 CASH DUBAI 62.05 62.40 NEWS Reeling from the blockage in the Suez Canal, shipping rates for oil product tankers have nearly doubled this week, and several vessels were diverted away from the vital waterway as a giant container ship remained wedged between both banks. Yemen’s Houthi forces on Friday said they launched attacks on Thursday on Saudi Arabia targeting facilities owned by state-owned oil company Saudi Aramco and military sites. A former Glencore Plc fuel oil trader pleaded guilty and agreed to pay $100,000 to settle charges of market manipulation of a key U.S. pricing benchmark, U.S. authorities said on Thursday. For crude prices, oil product cracks and refining margins, please click on the RICs below. Brent Dubai DME Oman Brent/Dubai EFS <DUB-EFS-1M> PRODUCT CRACKS Fuel oil crack Gasoil crack Naphtha crack <NAF-SIN-CRK> Complex refining margins (Reporting by Florence Tan and Olga Yagova)

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