Middle East crude benchmarks such as Oman, Dubai, and Murban experienced a decline on Thursday after two days of price increases. Despite this drop, the markets remain buoyed by active spot trading.
Concurrently, global oil prices climbed by 1% due to optimistic expectations surrounding potential trade negotiations between the United States and China, the two largest consumers of oil. In specific transactions, India’s Hindustan Petroleum Corporation Limited (HPCL) purchased 2 million barrels of July-loading Murban crude from PetroChina via a tender that closed on Wednesday.
This highlights continued interest in crude oil from the region, even as benchmark prices shift. In Singapore, cash deals reflect the market’s fluctuations, with cash Dubai’s premium to swaps experiencing some variability, though exact figures remain unspecified.
Additionally, Vitol is scheduled to deliver a July-loading Murban crude cargo to PetroChina following these recent transactions. Recent reports from the Energy Information Administration (EIA) indicate a drop in U.S. crude and distillate inventories last week.
Jet fuel demand surged to a five-year high, signaling a potential recovery in energy consumption. On another front, Sri Lanka has taken steps to investigate offshore oil exploration in the Mannar Basin, with the Cabinet approving the hiring of a consultant to facilitate the process.
Meanwhile, Suncor Energy, Canada’s second-largest oil producer, indicated its readiness to endure lower global oil prices thanks to its recent cost-cutting measures, though it remains open to reducing capital spending if economic conditions worsen. Finally, Kazakhstan reported a 6.5% increase in oil production, including condensate, for April compared to March, according to Russia’s Interfax news agency citing the country’s energy ministry.
This uptick illustrates the varying dynamics within the global oil market.