Middle East crude bench-mark spot premiums for Oman, Dubai, and Murban experienced a slight decline on Tuesday due to an increase in supply prospects and a pessimistic outlook for demand. This follows a significant drop in all benchmarks earlier this month after OPEC+ announced plans to raise its oil supply starting in April. In Singapore, cash Dubai’s premium to swaps decreased by 11 cents, settling at $1.24 per barrel. It was reported that PetroChina will deliver two Upper Zakum crude cargoes, which are set to load in May, to Vitol as part of the ongoing transactions in the market.
In related news, Indonesia plans to construct oil refineries on several islands, including Kalimantan and Sulawesi, aiming for a total refining capacity of 1 million barrels per day. This is an upgrade from the original plan, which involved building a single refinery with a capacity of 500,000 bpd, according to the country’s energy minister. Fatih Birol, the head of the International Energy Agency based in Paris, emphasized the necessity for investment in oil and gas fields to bolster global energy security during a statement made on Monday. Meanwhile, U.S. Energy Secretary Chris Wright announced intentions to collaborate with Congress to cancel pre-scheduled sales from the Strategic Petroleum Reserve, a measure aimed at addressing dwindling stockpiles.
Additionally, the CEO of Saudi Aramco highlighted on Monday that policymakers and energy executives need to reconsider their energy transition strategies. He advocated for reducing reliance on aspects of the transition that have proven ineffective, underlining the importance of investing in fossil fuels to satisfy global energy demand.