Middle East Crude-Benchmarks edge lower on optimism over possible end to Iran war
SINGAPORE, May 7 (Reuters) - Middle East crude benchmark premiums of Oman, Dubai and Murban edged lower on Thursday, amid growing expectations of a peace deal between Washington and Tehran that could ease supply shortage.
Trade activity stayed light on Thursday.
A report from Saudi Arabia's Al Arabiya news agency on Thursday said that understandings have been reached to ease the U.S. blockade of Iranian ports in exchange for a gradual reopening of the Strait of Hormuz. Reuters could not immediately verify the report.
Iran had said on Wednesday that it was reviewing a U.S. peace proposal that sources said would formally end the war while leaving unresolved the key U.S. demands that Iran suspend its nuclear programme and reopen the Strait of Hormuz.
Brent, Oman and Murban futures all slid on Thursday.
SINGAPORE CASH DEALS
Cash Dubai's premium to swaps fell 83 cents to $6.98 a barrel.
PRICES ($/BBL)
CURRENT |
PREV SESSION |
|
GME OMAN |
96.64 |
103.25 |
GME OMAN DIFF TO DUBAI |
6.37 |
7.37 |
CASH DUBAI |
97.25 |
103.69 |
NEWS
Shell's SHEL.L first-quarter profit beat estimates and hit its highest in two years at $6.9 billion on Thursday, boosted by gains linked to the Middle East war, leading the company to raise the dividend by 5%.
Vietnam's largest refinery, Nghi Son Refinery and Petrochemical LLC, is considering quarterly tenders and spot cargo procurement to secure sufficient crude oil for its operations as the crisis in the Middle East continues to disrupt supplies, the company said on Thursday.
China's financial regulator has advised the country's largest lenders to temporarily suspend new loans to five refineries recently sanctioned by the U.S. over their ties to Iranian oil, Bloomberg News reported on Wednesday, citing people familiar with the matter.
Oil supplies are set to tighten further in coming weeks even if the U.S. and Iran agree on a peace deal because it will take weeks for oil shipments to resume from the Middle East Gulf and reach refiners worldwide - so oil companies will continue to deplete storage tanks to meet peak summer demand.
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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