Middle East crude benchmark spot premiums of Murban and Dubai extended their rally on Friday, supported by a better demand outlook from Asia after Western sanctions on top Russian producers.

All benchmarks surged in the previous session after Washington hit major suppliers Rosneft ROSN and Lukoil LKOH with sanctions over the Ukraine war.

Indian refiners and some Chinese companies, buyers in the world’s top two importers, are set to curtail purchases of Russian oil to comply with the new sanctions, sources said, turning to other countries for alternative supply.

SINGAPORE CASH DEALS

Cash Dubai’s premium to swaps rose 21 cents to $2.92 a barrel, the highest since October 1.

PetroChina will deliver a December-loading Upper Zakum crude cargo to Mercuria following the deals.

NEWS

Chandra Asri Pacific TPIA said on Friday it will acquire Exxon Mobil’s XOM network of Esso-branded retail petrol stations in Singapore as the U.S. major streamlines its downstream operations.

U.S. oil company ConocoPhillips COP is laying off employees at its Canadian operations, according to three sources and a company memo reviewed by Reuters, as it moves to cut up to a quarter of its global workforce by next year.

U.S. sanctions on Russian-owned NIS have prevented the Serbian oil group from receiving a crude cargo that could have bought time for Serbia’s sole refinery, which faces closure without new supplies, sources with knowledge of the matter said.

African oil and gas company Rhino Resources plans to drill an appraisal well on a Namibian prospect next year and take a flow test on another as it races TotalEnergies TTE to first oil in the southern African nation, its chief executive said.
Source: Reuters