Middle East Crude Prices: Oman and Murban Decline; Dubai Increases Premium

On Tuesday, Oman and Murban crude benchmarks saw a decline in premiums, while Dubai’s premium rose. Oil prices increased due to new U.S. sanctions on Iran, which raise concerns about potential supply disruptions. Taiwan’s CPC procured six million barrels of sweet crude, and several companies reported financial updates amid changing market dynamics.

On Tuesday, the spot premiums for Middle East crude benchmarks, Oman and Murban, declined, while the premium for Dubai experienced a slight increase. Oil prices increased for a second consecutive day, driven by heightened concerns over supply disruptions due to new U.S. sanctions against Iran’s oil industry and robust global refining margins. The U.S. Treasury Department had announced sanctions on over 30 brokers and shipping companies involved in Iranian petroleum sales and transportation.

In the latest tender, Taiwan’s CPC Company purchased six million barrels of sweet crude scheduled for delivery in May. The cash premium for Dubai increased by 8 cents, reaching $3.02 per barrel in relation to swaps. Current prices for GME Oman are reported at $76.94, up from $76.59 in the previous session, with the differential to Dubai now at $2.16, down from $2.53.

In other news, Malaysian state energy firm, Petroliam Nasional Bhd, reported a decline in profit for 2024 compared to the previous year. According to S&P Global Commodity Insights, the dated Brent oil market has been effective since incorporating U.S. WTI crude into the benchmark, with no further changes anticipated. Additionally, Chevron has announced a restructuring of its business framework and a leadership team reshuffle.

Spain’s second-largest oil company, Moeve, formerly known as Cepsa, has reported a profitable year, attributing this to increased earnings in its energy and chemicals sectors alongside a boost in investments. Furthermore, BP is expected to abandon its target of increasing renewable energy production twenty-fold by 2030 and will redirect its focus to fossil fuels as part of a strategy adjustment to better address investor concerns over earnings.

In conclusion, the latest developments in the Middle East crude oil market reflect evolving dynamics influenced by geopolitical tensions and corporate strategy shifts. While the premiums for Oman and Murban have declined, Dubai’s premium has seen an uptick, coinciding with increased oil prices on account of sanctions against Iran. Furthermore, shifts in strategies from key energy firms underscore the broader trends in the oil industry.

Original Source: www.tradingview.com