Middle East crude benchmark spot premiums of Dubai and Murban fell on Wednesday, as previous supply disruptions concerns due to sanctions on Russian oil producers eased.

Western sanctions on Russian top producers triggered a rally in benchmarks last week, but it has since cooled on limited demand from India for the Middle Eastern grade, and as the market refocused on ample supplies as OPEC+ and non-OPEC+ countries plan to increase output.

SINGAPORE CASH DEALS

Cash Dubai’s premium to swaps fell 33 cents to 67 cents a barrel.

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

NEWS

Big Oil may see marginally higher oil prices and stronger refining results boost third-quarter earnings after declining earnings over the past year, but some analysts are more interested in how global oil majors set the stage for 2026 when they begin reporting results this week.

India’s state-run refiner Mangalore Refinery and Petrochemicals Ltd MRPL has no immediate plans to buy Russian oil due to risks involved after the latest U.S. sanctions on Moscow’s top oil producers, a company executive told reporters on Wednesday.

The discounts on Iranian oil offered to China have hit their widest in more than a year, as tightening sanctions on Russia and Iran squeeze buying from independent refiners already constrained by a shortage of crude import quotas, trade sources said on Wednesday.

The CEO of Saudi state oil giant Aramco said on Tuesday crude oil demand was strong even before sanctions were imposed on major Russian oil firms Rosneft ROSN and Lukoil LKOH and that Chinese demand was still healthy.
Source: Reuters