Spot premiums for Middle East crude benchmarks Oman, Dubai and Murban slumped on Friday to below $2 a barrel, as unsold November-loading supply and a potential resumption of exports from the Kurdish region weighed on the market.

BRAZILIAN OIL

Asian trading firm Cathay Petroleum has agreed an annual deal marketing Brazilian crude oil in the Asia-Pacific region for independent producer Prio PRIO3, a trading executive with direct knowledge of the deal said.

The deal to market 110,000 barrels per day of oil for Rio de Janeiro-based Prio marks an expansion in the trading portfolio for Cathay Petroleum, which turned around nearly 300,000 bpd of crude last year.

SINGAPORE CASH DEALS

Cash Dubai’s premium to swaps slipped 58 cents to $1.74 a barrel.

Mercuria stepped up Dubai partial sales on Platts window, leading to the deliveries of one al-Shaheen crude cargo each to Gunvor and NPI. The European trader has delivered 37 cargoes so far this month. Hengli Petrochemical also delivered an Upper Zakum cargo to NPI on Friday.

A total of 38 Upper Zakum cargoes, or 19 million barrels, have been delivered this month.

NEWS

OPEC+ has delivered about three quarters of the extra oil output it targeted since the group started production hikes in April, and the level may fall closer to half later in the year as producers hit capacity limits, sources and analysts said and data showed.

President Donald Trump said on Thursday he believes Turkey will agree to his request to stop purchasing Russian oil and that he may lift U.S. sanctions on Ankara so it can buy advanced American F-35 jets.

Iraq will restart the export of oil from its Kurdish region to Turkey on Saturday after an interruption of more than two years, following what Prime Minister Shia al-Sudani called a historic agreement between Baghdad and the Kurdish regional government.

Nigeria’s oil regulator has approved a $510 million deal by TotalEnergies TTE to sell its entire 12.5% interest in oil mining lease (OML) 118, which hosts the offshore Bonga oilfield, to the field’s operator Shell SHEL, and Agip ENI, the agency said on Thursday.

The U.S. will impose sanctions from October 1 on Serbia’s Russian-owned oil company NIS (NIIS.BEL), which operates the only oil refinery in the Balkan country, President Aleksandar Vucic said on Thursday.
Source: Reuters