Middle East Crude Markets: Dubai and Murban Prices Increase, Oman Declines

Middle Eastern crude benchmarks saw Dubai and Murban premiums increase, while Oman declined. Oil prices recovered after supply concerns arose due to U.S. policy changes affecting Chevron in Venezuela. Eni reported significant profit drops, amidst geopolitical tensions impacting the oil sector.

On Thursday, Middle Eastern crude benchmarks for Dubai and Murban experienced a rise in spot premiums, in contrast to a decline observed in Oman. This increase in oil prices followed a downward trend over the preceding two sessions, driven by renewed supply concerns following U.S. President Donald Trump’s retraction of a license previously granted to Chevron to operate in Venezuela.

President Trump announced the decision to reverse the license given to Chevron by former President Biden more than two years ago. He criticized Venezuelan President Nicolas Maduro for failing to make necessary progress regarding electoral reforms and the return of migrants, which has prompted concerns about potential impacts on oil supply.

In Singapore, cash Dubai’s premium to swaps recorded an increase of 19 cents, rising to $3.37 per barrel. Notable sales in the region included transactions between Reliance and Vitol at $75.95 a barrel, and multiple transactions involving Unipec and Vitol at $76.00 per barrel.

Moreover, price comparisons indicate that GME Oman is currently priced at $74.95, having decreased from the previous session’s price of $75.79. The differential between GME Oman and Dubai is now noted at 2.32, a drop from 2.72 previously. Cash Dubai maintained stability at $76, slightly down from $76.25 earlier.

Significantly, the Italian energy group Eni reported a decline of 46% in its fourth-quarter adjusted net profit, affected by lower energy prices and difficulties in its refining, biofuel, and chemicals sectors. Concurrently, the U.S. extended a 30-day suspension of sanctions on Serbian oil company NIS, which is predominantly owned by Russian entities and operates the country’s sole oil refinery.

Recent data revealed a second consecutive weekly decrease in Singapore’s middle distillates inventories, attributed to increased net exports despite a rise in diesel and gasoil imports. Reports also surfaced that Iraqi Kurdistan and the federal government have resolved their oil disputes, potentially enabling Russian companies to recommence their operations in the region, as confirmed by TASS news agency citing Russia’s Energy Minister Sergei Tsivilev.

In summary, Thursday witnessed a rise in crude premiums for Dubai and Murban, while Oman experienced a decline. The fluctuations in oil prices are influenced by renewed supply concerns, particularly linked to U.S. policy changes concerning Venezuela. Furthermore, developments in regional oil disputes and corporate performance reflect ongoing volatility in the energy market.

Original Source: www.tradingview.com

About Sofia Nawab

Sofia Nawab is a talented feature writer known for her in-depth profiles and human-interest stories. After obtaining her journalism degree from the University of London, she honed her craft for over a decade at various top-tier publications. Sofia has a unique gift for capturing the essence of the human experience through her writing, and her work often spans cultural and social topics.

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