Middle East crude benchmark spot premiums, including Oman, Dubai, and Muban, remained unchanged on Monday as oil prices stabilized following a significant decline in the previous week. Traders are closely monitoring the market in anticipation of Saudi Arabia’s April crude oil allocation, particularly after the kingdom reduced its official selling prices to Asia for the first time in three months.
In cash transactions in Singapore, the premium for Cash Dubai relative to swaps decreased by 2 cents to $1.35 a barrel. Notably, PetroChina has agreed to deliver a May-loading Upper Zakum crude cargo to Vitol as part of these deals.
Additionally, news emerged regarding the oil refinery sector, specifically a major incident at Russia’s Kirishi oil refinery. The facility, one of the largest in the country, sustained damage due to debris falling during a significant drone attack attributed to Ukraine, as reported by the governor of the Leningrad region.
On the political front, the U.S. government is exploring potential ways to ease sanctions imposed on Russia’s energy sector. This move is part of a broader strategy to deliver prompt relief if Moscow complies and ends military actions in Ukraine, according to sources familiar with the discussions.
In other developments, the Abu Dhabi National Oil Company is reportedly considering the listing of its international investment arm, XRG, on an exchange outside the UAE. This step could potentially lead to one of the largest listed energy companies globally.
Furthermore, U.S. Energy Secretary Chris Wright indicated that refilling the Strategic Petroleum Reserve to its maximum capacity could take years and require an investment of $20 billion. Wright also expressed his commitment to expediting permitting and supporting the oil and gas sector during a meeting with industry executives.