Middle East crude benchmark spot premiums of Dubai and Murban edged down on Tuesday, while that of Oman held steady. All premiums have recorded little movements in recent weeks.

Crude oil exports by Saudi Arabia to China are set to touch a three-month high in January after the kingdom slashed its official selling prices to Asia, sources said on Tuesday.

State oil company Saudi Aramco 2222 will ship about 49.5 million barrels to China next month, or about 1.60 million barrels per day, a tally of allocations to Chinese refiners showed.

The allocation volume marks a jump from the previous two months, when it remained under 40 million barrels, and is the highest since October, according to Reuters records.

Companies that planned to increase Saudi crude liftings next month included PetroChina 601857, Rongsheng Petrochemical 002493 and Shenghong Petrochemical, the sources said.

Meanwhile, CNOOC and Hengli Petrochemical 600346.SS will lift less than in the prior month.

SINGAPORE CASH DEALS

Cash Dubai’s premium to swaps fell 7 cents to 62 cents a barrel.

ExxonMobil will deliver two February-loading Upper Zakum crude cargoes to Glencore following the deals.

NEWS

Iraq restored production at Lukoil’s LKOH West Qurna 2 oilfield, one of the world’s largest, after a leak on an export pipeline slashed its output, two Iraqi energy officials told Reuters on Monday.

State energy major Saudi Aramco plans to start exporting the first condensate produced from the Jafurah gas plant in February, two sources with knowledge of the matter said on Tuesday.

Singapore’s Aster Chemicals and Energy said on Tuesday it is investing $155 million to upgrade refining facilities at its Bukom refinery, which will increase its crude processing to 300,000 barrels per day.

Kazakhstan plans to supply 50,000 metric tons of crude to China directly from the vast Kashagan field in December for the first time after a Ukrainian drone damaged the Black Sea terminal of the Caspian Pipeline Consortium (CPC), two sources told Reuters.
Source: Reuters