Middle East crude benchmarks remain steady, with the Dubai benchmark showing little change on Tuesday. This stability is supported by demand from companies such as Vitol, ADNOC, and Phillips 66 in the trading window. However, Iraqi Basra crude is trading at wider discounts this month as traders adjust to its higher official selling prices (OSPs). Recently, Pertamina sold 1 million barrels of April-loading Basra Medium crude to Vitol at a discount of $1.60 per barrel below the OSP, without any restrictions on the destination.
Additionally, U.S. refiner Marathon acquired 1 million barrels each of the same grade from Totsa and BP, at a slight discount exceeding $1 to the OSP. In the arbitrage market, China’s Rongsheng Petrochemical has purchased 6 million barrels of Canadian Access Western Blend (AWB) crude for June delivery, securing discounts of nearly $3 per barrel against dated Brent. This marks an expansion of their sourcing, as the refiner recently acquired Ecuadorean Oriente crude from PetroChina for May delivery. In Singapore, the cash Dubai premium to swaps decreased by 1 cent, bringing it to $1.56 per barrel.
Following recent transactions, PetroChina is set to deliver a May-loading Murban crude cargo to Vitol. In other news, Venezuela’s state-run PDVSA is preparing three operational strategies to sustain oil production and exports at its largest joint venture with Chevron, especially with a critical license expiring next month. Moreover, Chevron has increased its stake in Hess Corp by approximately 4.99%, demonstrating its commitment to completing the planned acquisition. Lastly, U.S. President Donald Trump is scheduled to discuss the ongoing Ukraine conflict with Russia’s Vladimir Putin, where crucial territorial negotiations are expected to be addressed.