Middle East Crude Prices: Dubai and Murban Rise While Oman Declines

Middle East crude benchmark premiums rose for Dubai and Murban, while Oman’s declined. Oil prices gained after U.S. sanctions on Chevron were reversed, raising supply concerns. Eni reported a significant profit drop, and there were updates on sanctions concerning Serbian oil and settlements in Iraqi Kurdistan.

On Thursday, the spot premiums for Middle East crude benchmarks Dubai and Murban exhibited an upward trend, while Oman experienced a decline. The increase in oil prices followed two consecutive sessions of decrease, largely attributed to renewed supply concerns triggered by U.S. President Donald Trump’s announcement that he would reverse a previously granted license for Chevron to operate in Venezuela.

President Trump stated that the reversal reflects accusations against Venezuelan President Nicolas Maduro for failing to implement electoral reforms and ensure the return of migrants. Consequently, the cash premium for Dubai rose by 19 cents, reaching $3.37 per barrel.

In Singapore, cash Dubai’s price rose to $76 per barrel, while Oman’s price decreased to $74.95. Noteworthy transactions included Reliance selling at $75.95, and other deals involving UNIPEC and Vitol at $76.00. Additionally, Oman’s differential to Dubai settled at 2.32.

In other energy news, Italian company Eni reported a significant 46% drop in its fourth-quarter adjusted net profit due to falling energy prices and performance issues within its refining and chemical divisions. Furthermore, a 30-day suspension of sanctions on Serbian oil company NIS was announced by the United States, which is primarily owned by Russian firms.

Moreover, Singapore’s middle distillate inventories saw a reduction for the second week, driven by increased net exports despite a rise in diesel and gasoil imports. In a related development, a resolution of oil disputes between Iraqi Kurdistan and the federal government was reported, allowing Russian companies to recommence their operations in the region.

In summary, the Middle East crude benchmarks are experiencing mixed trends, with Dubai and Murban prices rising while Oman slips. The fluctuations in price are influenced by geopolitical factors and market dynamics. Ongoing developments, such as changes in U.S. sanctions and regional energy disputes, will continue to impact the crude oil market. Investors should remain vigilant regarding these variables to effectively navigate the evolving landscape of oil prices.

Original Source: www.tradingview.com