Middle East Crude-Murban, Dubai differentials fall on rising supply outlook
SINGAPORE, June 18 (Reuters) - Middle East crude benchmark Murban differentials fell on Thursday to discount, while the Dubai premium slightly eased on rising supply outlook.
Oil prices fell 2% on Thursday to their lowest since the first trading day of the Iran war, as a U.S.-Iran interim deal to end the war, reopen the Strait of Hormuz and ease sanctions on Tehran boosted the global supply outlook.
The 14-point memorandum of understanding begins a 60-day negotiation period during which Iran will allow toll-free passage through the Strait of Hormuz, a key oil and gas shipping lane. The deal calls for traffic through the strait to be restored to its full capacity within 30 days.
Middle Eastern crude oil markets could come under further pressure if the Strait of Hormuz reopens on Friday, releasing millions of barrels of oil stranded in the Middle East Gulf into global markets, industry executives said.
TENDER
Taiwan's CPC has bought four million barrels of sweet crude from the United States for September arrival via a tender, trade sources said.
Sri Lanka's Ceypetco Refinery is also seeking for Murban crude via tender.
SINGAPORE CASH DEALS
Cash Dubai's premium to swaps fell 3 cents to 34 cents a barrel.
PRICES ($/BBL)
CURRENT |
PREV SESSION |
|
GME OMAN |
73.52 |
73.20 |
GME OMAN DIFF TO DUBAI |
0.19 |
0.54 |
CASH DUBAI |
73 |
73.70 |
NEWS
PetroChina 601857.SS and Indian Oil Corp IOC.NS failed to secure very large crude carriers to lift Iraqi Basrah crude in late June, company and shipping sources said on Thursday, while another Chinese major Sinochem is on the hunt for a tanker.
Saudi Arabian oil giant Aramco 2222.SE is considering expanding its storage capacity around the world after energy supplies through the Strait of Hormuz were disrupted by the Iran war, Aramco Chairman Yasir Al-Rumayyan said on Thursday.
International Energy Agency head Fatih Birol on Thursday welcomed the interim agreement to end the Iran war and called for the Strait of Hormuz to be reopened without conditions.
Scores of Ukrainian drones bore down on Moscow on Thursday, hitting the Russian capital's oil refinery for the second time this week in what Kyiv cast as a demonstration of its growing capabilities that should force Russia to accept a peace deal.
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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