Middle East Crude-Benchmark premiums ease as oil futures slip on Lebanon ceasefire
SINGAPORE, June 4 (Reuters) - Middle East crude benchmarks Oman, Dubai and Murban premiums eased on Thursday, after oil futures traded lower following a ceasefire deal between Israel and Lebanon.
The ceasefire boosted hopes for a broader agreement to end the Iran war that could lead to a reopening of the Strait of Hormuz.
Trade activity for Middle East crude remained thin.
TENDERS
India's Hindustan Petroleum Corp HPCL.NS has bought 2 million barrels of oil from Brazil and West Africa via a tender for its 180,000 barrel-per-day (bpd) refinery in the desert state of Rajasthan, trade sources said on Thursday.
State-run HPCL has bought Brazil's Buzios crude from state-run Petrobras at a premium of $1.5 per barrel to the dated Brent contract and Nigeria's Agbami crude from Shell for HPCL Rajasthan Refinery Ltd (HRRL), the sources said.
HPCL has a 74% stake in HRRL while the Rajasthan state government owns the rest.
HPCL issued a separate tender seeking sweet crude, which will close later this week for its own refineries, the sources said.
The company operates a 190,000-bpd refinery at Mumbai in western Maharashtra state and a 300,000-bpd refinery at Visakhapatnam in southern Andhra Pradesh.
SINGAPORE CASH DEALS
Cash Dubai's premium to swaps fell 34 cents to $6.71 a barrel.
SELLER-BUYER |
PRICE ($/BBL) |
PTT-TRAFIGURA |
95.10 |
PRICES ($/BBL)
CURRENT |
PREV SESSION |
|
GME OMAN |
94.89 |
96.93 |
GME OMAN DIFF TO DUBAI |
6.50 |
6.78 |
CASH DUBAI |
95.10 |
97.20 |
NEWS
Iranian oil prices slipped into discounts for the first time since April, while Russian crude premiums eased as traders cut prices to entice Chinese buyers amid sluggish demand, trade sources said.
Even if the U.S. and Iran agreed to halt the war and open the Strait of Hormuz, ships trapped in the Gulf will be unable to leave without safety assurances, the CEO of V.Group, a leading global ship manager, told Reuters.
Onshore fuel oil inventories in key Asia trading hub Singapore fell to more than a year's low this week as outflows firmed, data showed on Thursday.
South Korea's refiners boosted jet fuel exports in May back to pre-Iran war levels, helped by a recovery in crude imports and encouraged by robust refining margins, analysts and trade sources said.
Russian oil production has fallen since the start of the year, Deputy Prime Minister Alexander Novak said on Thursday, blaming the decline on unplanned maintenance at refineries.
For crude prices, oil product cracks and refining margins, please click on the RICs below.
Brent |
BRENTSGMc1 |
Dubai |
DUBSGSWMc2 |
GME Oman |
OQc1 |
Brent/Dubai EFS |
DUB-EFS-1M |
PRODUCT CRACKS |
|
Fuel oil crack |
FO180SGCKMc1 |
Gasoil crack |
GO10SGCKMc1 |
Naphtha crack |
NAF-SIN-CRK |
Gasoline crack |
GL92-SIN-CRK |
Complex refining margins |
REF/MARGIN1 |
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