The Middle East crude benchmark for Murban saw a decline on Tuesday after experiencing significant gains in the previous session. This pullback comes in the wake of lowered export forecasts, while the price of Dubai crude fell for the second consecutive day. The Abu Dhabi National Oil Company (ADNOC) has adjusted its monthly export forecasts for Murban crude from August through next May, opting to increase processing at its refineries instead.
The crude oil market is facing increased supply pressure, particularly as eight key OPEC+ members have agreed to raise production by 411,000 barrels per day starting in July. This decision follows similar production increases that were agreed upon in both May and June. In a related development, refiners worldwide are currently benefiting from unexpected profits due to the production of essential fuels.
This trend has provided some relief to an industry facing challenges, though a predicted downturn is anticipated later this year. The tighter fuel supply, resulting from plant closures, has struggled to meet the high demand of the summer season. Additionally, Exxon Mobil and Azerbaijan’s SOCAR announced a partnership on Monday to explore onshore oil and gas production in Azerbaijan.
Concurrently, BP is expected to invest in new offshore fields in the region, as reported by multiple sources. In Brazil, the state-run oil company Petrobras announced it would reduce gasoline prices for distributors starting Tuesday. This marks the first cut in gasoline prices since October 2023.
In the U.S., President Donald Trump’s budget includes a proposal to close the Northeast Home Heating Oil Reserve, which stores 1 million barrels of diesel, a move aimed at protecting consumers.