Middle East Crude-Benchmarks fall as traders eye better supply outlook

Energy

Energy

TENI.SA

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- Middle East crude benchmarks Oman, Dubai and Murban fell on Tuesday, as traders eyed rising supplies and the demand outlook remained tepid.

The Dubai market flipped into a contango again, indicating ample supplies in the near term.

More vessels passed through the Strait of Hormuz after the U.S. on Monday authorised the sale of crude, petroleum products and petrochemicals of Iranian origin through August 21, easing decades-old sanctions as it pushes toward a final peace deal with Tehran.

The waiver is expected to increase Iranian oil supply. However, buyers are also cautious due to uncertainty over the sanctions relief, Washington's policy stance and challenges in dealing with banking and payment issues, the sources and analysts said.

Oil prices fell on Tuesday, extending losses from the previous session, on the signs of progress in restoring crude flows through the Strait of Hormuz. O/R

SINGAPORE CASH DEALS

Cash Dubai's premium to swaps fell $1.45 to minus 27 cents a barrel.

SELLER-BUYER

PRICE ($/BBL)

SHELL-PHILLIPS 66

71.80

UNIPEC-PHILLIPS 66

72.00

MERCURIA-BP

70.80

MERCURIA-GUNVOR

70.70

SHELL-VITOL

70.60

PRICES ($/BBL)

CURRENT

PREV SESSION

GME OMAN

69.91

71.77

GME OMAN DIFF TO DUBAI

-0.96

-0.35

CASH DUBAI

70.60

73.30

NEWS

A temporary U.S. sanctions waiver on Iranian oil sales is unlikely to draw orders from well-stocked Asian refiners, leaving independent Chinese refineries as the main buyer, trade sources and analysts said.

Indian Oil Corp IOC.NS has received no bids in tenders to charter vessels for lifting crude oil and liquefied petroleum gas cargoes from ports within the Strait of Hormuz, said two trade sources familiar with the matter.

Norway's combined oil and gas production exceeded an official forecast by 2.9% in May, the Norwegian Offshore Directorate (NOD) said on Tuesday.

India's imports of liquefied petroleum gas (LPG) from the U.S. are set to top 1 million metric tons in June, a record high, industry sources said, as New Delhi turned to costlier suppliers to offset disruption from the Middle East.

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