Middle East Crude-Benchmarks differentials post weekly losses on Iran deal

- Middle East crude benchmarks Dubai, Oman and Murban differentials post sharp losses this week, as fears of a supply glut following an interim peace deal between the U.S. and Iran weighed on the market.

Oman and Murban were at discounts on Friday, with level lowest in at least five months. Dubai briefly slipped into a discount earlier this week, but it gained on Friday.

Trading activity has been scarce amid a lack of specifics in the agreement.

Meanwhile, the scrapping of plans for U.S. and Iranian negotiators to meet in Switzerland on Friday added fresh uncertainty over the timing of talks, which will seek to turn a memorandum to end the over three-month-long war into a permanent peace deal.


TENDER

Abu Dhabi National Oil Company has issued its fourth tender this month, trade sources said on Friday, a move that could gauge whether buyers are willing to load crude in the Strait of Hormuz following an interim U.S.-Iran peace deal.

ADNOC is offering Upper Zakum, Umm Lulu and Das crude for June to August loading. Buyers can bid for up to 2 million barrels, the sources said.

ADNOC said in the tender that buyers, subject to mutual agreement, can lift cargoes on a free-on-board basis from Zirku or Das Island inside the Strait of Hormuz, the sources said.

Buyers can also lift from Fujairah storage outside the strait, as well as via ship-to-ship transfer between Fujairah and Sohar, and around Malaysia, they added.

ADNOC also offered buyers the option to receive cargoes on a delivered basis.

The terms are similar to tenders issued previously by the producer.

Kuwait Petroleum Corp is offering crude for July delivery via a tender, a document showed on Friday, after lifting force majeure and announcing plans to ramp up output.

The producer is offering Kuwait Export Crude with each cargo at 2 million barrels, according to the document.

They will be sold at a differential to the average Oman and Dubai price quotes on a delivered ex-ship basis, it said.

The tender will close on Tuesday, with bids remaining valid until Wednesday.


SINGAPORE CASH DEALS

Cash Dubai's premium to swaps rose/fell x cents to $xx a barrel.


PRICES ($/BBL)


CURRENT

PREV SESSION

GME OMAN

72.20

73.20

GME OMAN DIFF TO DUBAI

-0.91

0.54

CASH DUBAI

74.10

73


NEWS

The situation on Russia's fuel market is not easy, Igor Sechin, the CEO of the country's largest oil company Rosneft, said on Friday, the state RIA news agency reported, a day after a major Ukrainian drone attack on an oil refinery in Moscow.

Iraq is preparing to export crude oil and naphtha through ports in Syria, Syrian and Iraqi energy officials and refinery sources said after the Iran war cut off its main Gulf shipping routes.

A vessel owned by a Japanese company carrying three Japanese crew members safely passed through the Strait of Hormuz on Friday and exited the Gulf, Japan's Ministry of Foreign Affairs said.


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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Global arbitrage news and flows                 O/CRUDEARB      
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