Middle East crude benchmarks, including Oman, Dubai, and Murban, experienced notable increases on Monday, reflecting monthly gains attributed to rising concerns over supply disruptions amid the recent 12-day Iran-Israel conflict that concluded last week. This ongoing geopolitical uncertainty has contributed to lighter spot trading this month, as many market participants opted to stay on the sidelines in response to the surge in oil prices. In recent trading activities, the Indian Oil Corporation (IOC) procured one million barrels of Umm Lulu crude oil through a tender from Totsa, the trading division of TotalEnergies, as reported by trade sources on Monday. In terms of financial metrics, Cash Dubai’s premium to swaps climbed by 34 cents, reaching $2.73 per barrel.
For the month of June, Vitol sold one cargo, totaling 500,000 barrels, while Total secured two cargoes, aggregating one million barrels. Turning to refinery updates, Israel’s Oil Refineries announced on Sunday that it has partially resumed operations at its Haifa facility, which had been shuttered following an Iranian missile strike two weeks prior. On the news front, Polish refiner Orlen disclosed that it will cease purchasing Russian oil for its Czech refinery after June 30, according to Chief Executive Ireneusz Fafara. Furthermore, Equinor has announced an oil discovery at its Johan Castberg oilfield located in the Arctic Barents Sea, as confirmed by the company and the Norwegian Offshore Directorate.
Additionally, State Oil Limited, the parent company of the Lindsey oil refinery, which has a production capacity of 113,000 barrels per day, has entered insolvency proceedings and is now under administration following a directive from Britain’s High Court. In international trade discussions, President Donald Trump highlighted Japan’s “unfair” automobile trade practices with the U.S., urging that Japan should boost imports of U.S. energy resources to help address the trade deficit.