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☆ Oil nudges higher after Saudi Arabia hikes prices
▼ + stars: | 2024-05-06 | by ( ) www.cnbc.com time to read: +2 min

Oil futures edged up on Monday after Saudi Arabia hiked June crude prices for most regions and as the prospect of a Gaza ceasefire deal appeared slim, renewing fears the Israel-Hamas conflict could still widen in the key oil producing region. Brent crude futures climbed 28 cents, or 0.3%, to $83.24 a barrel at 0119 GMT, while U.S. West Texas Intermediate crude futures were at $78.40 a barrel, up 29 cents, or 0.4%. Saudi Arabia raised the official selling prices, or OSPs, for its crude sold to Asia, Northwest Europe and the Mediterranean in June, signaling expectations of strong demand this summer. This comes after Saudi Arabia raised June OSPs for most regions amid a tightening of supplies this quarter, he added. The geopolitical risk premium in oil prices has also eased as talks for a Gaza ceasefire are underway.

Persons: ICE Brent, Warren Patterson, OSPs, Brent, Benjamin Netanyahu, Baker Hughes Organizations: Brent, U.S, West Texas, ICE Locations: Saudi Arabia, Gaza, Israel, Asia, Northwest Europe

☆ Oil climbs as Gaza tensions rise, Saudi Arabia hikes prices
▼ + stars: | 2024-05-06 | by ( ) www.cnbc.com time to read: +2 min

A view of oil-well in action during sunset at Elk Hills Oil Field as gas prices on the rise in California, United States on April 14, 2024. Oil futures climbed on Monday after Saudi Arabia hiked June crude prices for most regions and as the prospect of a Gaza ceasefire deal appeared slim, renewing fears the Israel-Hamas conflict could still widen in the key oil-producing region. Brent crude futures were up 77 cents, or 0.9%, to $83.73 a barrel at 1055 GMT, while U.S. West Texas Intermediate crude futures were at $78.98 a barrel, up 87 cents, or 1.1%. The geopolitical risk premium in oil prices also eased as talks for a Gaza ceasefire were underway. Also supporting oil was Saudi Arabia's move to raise the official selling prices (OSPs) for its crude sold to Asia, Northwest Europe and the Mediterranean in June, signaling expectations of strong demand this summer.

Persons: Brent, Tony Sycamore Organizations: Brent, U.S, West Texas, IG Locations: Elk, California, United States, Saudi Arabia, Gaza, Israel, Rafah, Saudi, Asia, Northwest Europe, China

☆ Asia's refiners face profit crunch as Kuwait cuts crude exports
▼ + stars: | 2023-08-18 | by ( Muyu Xu | ) www.reuters.com time to read: +5 min

Lower Kuwaiti exports follow cuts from OPEC kingpin Saudi Arabia that have pushed Brent prices close to $90 a barrel and left little wriggle room for Asia's refiners, reliant on the Middle East for more than two-thirds of crude imports. Chinese refiners, which have invested heavily in new plants designed to process sour oil, are especially exposed. Discounted oil from Russia has eased some of the pain, replacing some Kuwaiti supply, largely to China and India. Additionally, Kuwait's joint venture 230,000 bpd Duqm refinery in Oman is scheduled to start operation by end-2023, which could reduce Kuwaiti crude exports by a further 100,000 bpd to 200,000 bpd in 2024, the consultancies said. Formosa could replace Kuwaiti supply with grades such as Iraq's Basra Medium, Qatar's al-Shaheen and Oman crude, Lin said, adding it can also process U.S. light sweet crude.

Persons: Brent, Asia's, Janiv Shah, Sun Jianan, Al Zour, consultancies, KPC, Lin, al, James Forbes, Muyu Xu, Florence Tan, Sonali Paul Organizations: Kuwait Oil Tanker, Oil, Companies, Lower, Saudi, United Arab, Rystad Energy, P, Kuwait Petroleum Corp, Shenghong, Taiwan Formosa Petrochemical Corp, FGE, Dubai, Brent, Thomson Locations: Kuwait, Pier, Companies Kuwait, SINGAPORE, OPEC, Lower Kuwaiti, Saudi Arabia, Russia, China, India, Iraq, United Arab Emirates, UAE, Taiwan, Pakistan, Philippines, Thailand, Oman, PetroChina's, Guangdong, Japan, South Korea, Vietnam, Formosa, Basra, Shaheen, Brent, Dubai

☆ Saudi Arabia may raise Sept crude prices for a third month
▼ + stars: | 2023-08-01 | by ( Muyu Xu | ) www.reuters.com time to read: +3 min

SINGAPORE, Aug 1 (Reuters) - Saudi Arabia, the world's biggest oil exporter, may raise its price for Arab Light crude for sale to Asian refiners for a third month as its voluntary output cuts may be extended, further tightening the supply of high-sulphur, or sour, crude. The supply reductions have boosted oil prices, particularly for sour crude, since the end of June. Arab Light prices are also supported by improving refining margins in Asia, in particular for middle distillates. Most of the survey respondents expected Saudi Arabia to raise prices for heavier grades Arab Medium and Arab Heavy by more than Arab Extra Light as the light crude is oversupplied. The Arab Extra Light OSP typically tracks premiums of Murban, a light sour crude from the United Arab Emirates.

Persons: Backwardation, Saudi Aramco's, Muyu Xu, Christian Schmollinger Organizations: Saudi Aramco, Organization of, Petroleum, Ministerial, United, Brent, Saudi, Kuwaiti, bbl, Thomson Locations: SINGAPORE, Saudi Arabia, State, Saudi, Oman, Dubai, OPEC, Saudi Aramco, Asia, Singapore, United Arab Emirates, Americas, West Africa

☆ Saudi Arabia hikes most August oil prices to Asia after supply cuts
▼ + stars: | 2023-07-06 | by ( Muyu Xu | ) www.reuters.com time to read: +2 min

Companies Saudi Arabian Oil Co FollowJuly 7 (Reuters) - Top oil exporter Saudi Arabia has raised the prices for most its crude oil to Asian customers in August for a second month, after its announcement of prolonging an extra output cut on top of a broader OPEC+ deal. Saudi Aramco hiked the official selling prices (OSP) for August-loading Arab Light to Asia by 20 cents a barrel from July to $3.20 a barrel over Oman/Dubai quotes, the state oil giant said in a statement. Saudi Arabia on Monday announced it would draw out its 1 million barrels-per-day (bpd) voluntary cut to oil production to August and left the door open to extend the trim further. The more expensive Saudi oil would further weigh on the thin refining margins in Asia and prompt refiners to seek alternatives from other Middle Eastern suppliers or from regions such as the U.S. and West Africa, considering the spread between Brent- and Dubai-pegged oil has narrowed. Meanwhile, the OSP to the United States was also raised by 10 cents in August from the prior month at $7.25 versus ASCI.

Persons: refiners, Muyu Xu, Brijesh Patel, David Goodman, David Evans, Alexander Smith Organizations: Saudi Arabian Oil, Saudi Aramco, Reuters, Saudi, Monday, Renaissance Energy, Thomson Locations: Saudi Arabia, OPEC, Saudi, Asia, Oman, Dubai, West Africa, Brent, Singapore, Europe, United States

☆ Asia refiners expect Saudi Arabia to cut August crude prices
▼ + stars: | 2023-07-03 | by ( ) www.reuters.com time to read: +3 min

Saudi Arabia in June unexpectedly raised prices for July-loading cargoes, eating into Asian refiners' margins. Profits at a typical Singapore refinery processing Dubai crude fell to an average of $3.44 a barrel in June, from $4.78 a barrel last month. Saudi crude prices typically closely track changes in benchmark Dubai monthly price spreads, but the two have disconnected in recent months. Saudi crude OSPs are usually released around the fifth of each month, and set the trend for Iranian, Kuwaiti and Iraqi prices, affecting about 9 million bpd of crude bound for Asia. Below are expected Saudi prices for August 2023 (in $/bbl against the Oman/Dubai average):Reporting by Muyu Xu; Editing by Florence Tan and Jamie FreedOur Standards: The Thomson Reuters Trust Principles.

Persons: Unipec, Muyu Xu, Florence Tan, Jamie Freed Organizations: Saudi Aramco, Dubai, Global, Kuwaiti, bbl, Thomson Locations: SINGAPORE, Saudi Arabia, OPEC, Saudi, Dubai, Oman, Singapore, PetroChina, Asia

An example is the trade in physical cargoes from the Middle East where Unipec, the trading arm of top Chinese refiner Sinopec, has been selling heavily this month. There are several reasons for this, including the output cuts implemented by OPEC+, which effect more Middle East grades than Brent and related light crudes. Asia is expected to import 29.12 million bpd in June, a third consecutive monthly gain and up from 26.47 million bpd in May, according to Refinitiv. China's imports are estimated at 12.5 million bpd, up slightly from May's 12.16 million, while India is forecast to receive 5.24 million bpd, up from 4.74 million bpd in May. Asia's imports from the United States are expected to reach a record high of 2.58 million bpd in June, up from 1.66 million bpd the prior month.

Persons: Unipec, refiners, BRENT, Brent, Stephen Coates Organizations: Unipec, Refinitiv Oil Research, Saudi Aramco, OPEC, Saudi, Aramco, refiners, Brent, . West Texas, Reuters, Thomson Locations: LAUNCESTON, Australia, Oman, Dubai, Middle East, Africa, Americas, Asia, Saudi, Brent, China, India, United States, Europe, North America

These comments represent just one of the contradictions in the current oil market. The desire for a stable oil market is extremely difficult to reconcile with being unpredictable. But the risk is that the increase isn't sustained, largely as a result of another oil market contradiction. It's another contradiction for the oil market to resolve as those three exporters are all under some form of Western sanctions. It may well be the case that the second half of this year sees a huge pick-up in crude oil demand.

Persons: Prince Abdulaziz bin, Brent, Sonali Paul Organizations: Organization of, Petroleum, Saudi Energy, Brent, International Energy Agency, SECOND, Saudi Aramco, Aramco, Reuters, Thomson Locations: LAUNCESTON, Australia, Saudi, OPEC, Vienna, Russia, China, India, Saudi Arabia

India's crude imports from Russia are expected to reach a record high in April as Asia's second-biggest oil buyer increasingly turns away from its traditional suppliers in the Middle East. As Russian oil was increasingly sanctioned and shunned by European buyers and some in Asia, such as Japan, the steep discounts on offer led to India's refiners buying increasing volumes. The Middle East's share of India's imports likely dropped to 39.8% in April, according to Refinitiv, down from the 12-month average of 56%. While the buying of Russian crude is fairly broad-based among India's refiners, the biggest buyer is Reliance Industries (RELI.NS), which operates a 1.24 million bpd refinery complex in Jamnagar. Kpler data shows that this complex is expected to receive 20.87 million barrels of Russian crude in April, or about 30% of the total volume of India's imports.

April 24 (Reuters) - Iraq's northern oil exports showed few concrete signs of an imminent restart after a month of standstill, as aspects of an agreement between Baghdad and the Kurdistan Regional Government (KRG) have yet to be resolved, according to four sources. Baghdad and Erbil, the capital of Iraq's semi-autonomous Kurdistan region, signed a temporary agreement on April 4 to restart northern oil exports. The KRG and Iraq's oil ministry did not respond to requests for comment. Iraq's lack of willingness to discuss these issues has frustrated Turkey, according to one source. Fields which are still running include Khurmala, which has reduced output from around 135,000 bpd to 100,000 bpd, according to a source familiar with field operations.

LAUNCESTON, Australia, April 18 (Reuters) - There is an increasing disconnect between the forecasts for strong global oil demand growth this year, led by Asia, and the reality of weakening margins for refined fuels. The profit from turning a barrel of Dubai crude into refined products at a typical Singapore refinery dropped to $2.53 a barrel on Monday. The falling margins on refined fuels may result in refiners in Asia processing less, especially as crude costs continue to rise. Despite the current problems facing refiners, both OPEC and the International Energy Agency (IEA) are sticking to bullish forecasts for crude demand growth in 2023. OPEC is also maintaining a bullish view for 2023 oil demand growth, keeping its forecast for an increase of 2.32 million bpd in its latest monthly report.

☆ Analysis: Russian sanctions shift oil price-making power to Asia from Europe
▼ + stars: | 2023-03-14 | by ( Alex Lawler | ) www.reuters.com time to read: +6 min

Western Sanctions have led Russia to sell more than twice as much crude to Asia in the year to January, according to Kpler data. Iran, under U.S. sanctions, has boosted exports to the highest in three years on some estimates, with China the biggest buyer. Hardeep Singh Puri, India's oil minister, said in early February the country will keep buying from Russia if prices "continue to be good". EUROPE LOSES SUPPLY SOURCEIndia was among those to have complained about the Asian premium they paid to the big exporters. "These normal sorts of patterns of Asian premium or discount don't really apply," he said.

If China's physical demand does accelerate from March, it may prove Aramco made the correct call in raising its OSP. Saudi crude is sold under long-term contracts that typically allow for variations in the volumes sought by refiners, or offered by Aramco. It's likely that Chinese refiners will first turn to Russian crude if they are boosting imports, as will refiners in India, Asia's second-biggest oil importer. This is set to be surpassed this month, with Kpler tracking seaborne arrivals of Russian fuel oil in China at 6.75 million barrels. It appears that China is already buying more Russian crude and fuel oil.

☆ Saudi Arabia may lower crude prices to Asia for 4th straight month
▼ + stars: | 2023-01-30 | by ( Muyu Xu | ) www.reuters.com time to read: +2 min

The European Union is set to ban Russian oil products imports from Feb. 5, which is expected to curb Russia's oil processing and lead to more crude oil exports. Saudi crude OSPs set the trend for Iranian, Kuwaiti and Iraqi prices, affecting about 9 million barrels per day (bpd) of crude bound for Asia. Saudi Aramco sets its crude prices based on recommendations from customers and after calculating the change in the value of its oil over the past month, based on yields and product prices. Saudi Aramco officials as a matter of policy do not comment on the kingdom's monthly OSPs. Below are expected Saudi prices for March (in $/bbl against the Oman/Dubai average):Reporting by Muyu Xu; editing by Uttaresh.VOur Standards: The Thomson Reuters Trust Principles.

☆ Most major Gulf stock markets fall on hawkish Fed, Egypt extends rally
▼ + stars: | 2023-01-05 | by ( Shamsuddin Mohd | ) www.reuters.com time to read: +2 min

Saudi Arabia's benchmark stock index (.TASI) closed flat, as losses in energy and financial shares were capped by gains in real estate stocks. In Abu Dhabi, the benchmark index (.FTFADGI) declined 0.3%, as the country's largest lender First Abu Dhabi Bank (FAB.AD) eased 0.6% while fertiliser maker Fertiglobe (FERTIGLOBE.AD) tumbled 2.4%. Alpha Dhabi (ALPHADHABI.AD) and Abu Dhabi state fund Mubadala Investment plan to deploy up to 9 billion dirhams ($2.45 billion) in credit markets through a new joint venture, the companies said. Elsewhere, Abu Dhabi National Oil Company (ADNOC) said on Thursday it would allocate $15 billion to decarbonisation projects by 2030. The benchmark stock index in Qatar (.QSI) jumped 2.8% to close the week with a gain of 4.3%.

☆ Saudi Arabia may cut Arab Light crude prices to 15-month low for Asia
▼ + stars: | 2023-01-04 | by ( Muyu Xu | ) www.reuters.com time to read: +2 min

Companies Saudi Arabian Oil Co FollowSINGAPORE, Jan 4 (Reuters) - Top oil exporter Saudi Arabia may further cut the prices for its flagship Arab Light crude grade to Asia in February, after they were set at a 10-month low this month, as concerns of oversupply continued to cloud the market. Though Moscow last week banned crude sales to countries that observe the price ceiling on Russian crude oil, its key oil clients in Asia would be unaffected as they did not join the price cap coalition. Oil demand is also unlikely to return imminently even though China has removed its stringent COVID-19 restrictions. Saudi Aramco sets its crude prices based on recommendations from customers and after calculating the change in the value of its oil over the past month, based on yields and product prices. Below are expected Saudi prices for February 2023 (in $/bbl against the Oman/Dubai average):Reporting by Muyu Xu; Editing by Sherry Jacob-PhillipsOur Standards: The Thomson Reuters Trust Principles.

☆ Saudi Aramco to ship full oil contract volumes to Asia in Dec
▼ + stars: | 2022-11-10 | by ( Muyu Xu | ) www.reuters.com time to read: +2 min

Companies Saudi Arabian Oil Co FollowSINGAPORE, Nov 10 (Reuters) - Saudi Aramco has told at least four refinery customers in North Asia they will receive full contract volumes of crude oil in December, several sources with knowledge of the matter said on Thursday. "(The OSP adjustment) could indicate that Saudi wants to maintain its market share in Asia in December when the price cap on Russian crude kicks in," said another source. The United States, the European Union and other G7 nations are set to impose a price cap on Russian oil on Dec. 5 in response to Russia's invasion of Ukraine. China, the biggest buyer of Saudi crude oil, has increased purchases from Russia to take advantage of discounts for Russian oil as western countries scaled back trade with Moscow. Saudi Aramco did not immediately respond to Reuters' request for comment.

A weaker dollar boosts oil demand as it makes the commodity cheaper for those holding other currencies. While demand concerns weighed on the market, supply is still expected to be tight, with Europe's upcoming embargoes on Russian oil starting and a slide in U.S. crude stockpiles. "The spectre of further rate hikes dimmed hopes of a pick-up in demand," ANZ Research analysts said in a note. ANZ analysts pointed to signs of weaker demand in Europe and the United States with people driving less and Amazon warning of weaker sales, which could dampen demand for distillate. The cut was in line with trade sources' forecasts, which were based on a weaker outlook for Chinese demand.

☆ Oil climbs as dollar slips, but demand fears keep a lid on gains
▼ + stars: | 2022-11-04 | by ( Sonali Paul | ) www.reuters.com time to read: +2 min

Both contracts fell in early trade as the dollar moved higher then turned around when the dollar index slipped 0.3% to 112.67. A weaker dollar boosts oil demand as it makes the commodity cheaper for those holding other currencies. "The spectre of further rate hikes dimmed hopes of a pick-up in demand," ANZ Research analysts said in a note. ANZ analysts pointed to signs of weaker demand in Europe and the United States with people driving less and Amazon warning of weaker sales, which could dampen demand for distillate for its deliveries. The cut was in line with trade sources' forecasts, which were based on a weaker outlook for Chinese demand.

☆ Oil prices drop as demand fears dominate
▼ + stars: | 2022-11-04 | by ( Sonali Paul | ) www.reuters.com time to read: +2 min

Companies Amazon.com Inc FollowMELBOURNE, Nov 4 (Reuters) - Oil prices slid in early trade on Friday, extending losses from the previous session on fears U.S. interest rates will go higher than previously expected and fresh concerns that COVID outbreaks will dent fuel demand in China. Brent crude futures dropped by 22 cents, or 0.2%, to $94.45 a barrel at 0025 GMT after falling 1.5% in the previous session. "The spectre of further rate hikes dimmed hopes of a pick-up in demand," ANZ Research analysts said in a note. ANZ analysts pointed to signs of weaker demand in Europe and the United States with people driving less and Amazon warning of weaker sales, which could dampen demand for distillate for its deliveries. Investors earlier in the week had thought the world's largest oil importer may be moving toward easing restrictions to boost the economy.

☆ Oil climbs 4% as dollar slips and EU ban looms
▼ + stars: | 2022-11-04 | by ( Julia Payne | ) www.reuters.com time to read: +3 min

Both contracts were supported by a weaker dollar , which can boost oil demand because it makes the commodity cheaper for those holding other currencies. While demand concerns weighed on the market, supply is expected to remain tight because of Europe's planned embargoes on Russian oil and a slide in U.S. crude stockpiles. "The slight weakness in the dollar, the upcoming ban on Russian oil sales are certainly supportive as focus is shifting from recession fears to supply issues," said PVM Oil Associates analyst Tamas Varga. "The main catalyst, however, is reports that China may ease its zero-Covid restrictions, which would be a boon to its economy and oil demand." The EU ban on Russian crude imports is due to take effect from Dec. 5.

☆ Saudi Arabia may cut crude prices for Asia for Dec cargoes
▼ + stars: | 2022-10-31 | by ( Muyu Xu | ) www.reuters.com time to read: +3 min

Companies Saudi Arabian Oil Co FollowSINGAPORE, Oct 31 (Reuters) - Top oil exporter Saudi Arabia may cut the prices of most crude grades to Asia in December as weaker-than-expected fuel consumption in China amid its strict COVID-19 rules put a lid on regional demand, trade sources said. The price cut comes as China, the world's largest crude oil buyer, extended stringent mobility controls to contain the highly transmissible Omicron variant after a surge in daily reported cases. ,Saudi crude OSPs are released around the fifth of each month, and set the trend for Iranian, Kuwaiti and Iraqi prices, affecting more than 9 million barrels per day (bpd) of crude bound for Asia. Saudi Aramco sets its crude prices based on recommendations from customers and after calculating the change in the value of its oil over the past month, based on yields and product prices. Below are expected Saudi prices for December (in $/bbl against the Oman/Dubai average):Reporting by Muyu Xu; Editing by Christian SchmollingerOur Standards: The Thomson Reuters Trust Principles.

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