off-the-wire

Middle East Crude-Dubai falls as refining margins remain weak

Kitco Media
By Reuters
Published:
Updated:
Reuters
SINGAPORE, May 2 (Reuters) - Middle East crude benchmark Dubai dropped in the first trading session of May on Tuesday, as weak refining margins continued to weigh on oil prices. "Some Asian refiners already see their margins falling into negative territory. If the situation does not improve later this month, they may have to cut run rates and reduce crude purchases," said a Singapore-based oil trader. A Reuters survey showed that top oil exporter Saudi Arabia may cut the price for its flagship Arab Light crude to Asia in June despite an extra output cut from OPEC+, as refiners hit by sliding fuel prices consider reducing output and China and India snap up cheap Russian crude. The official selling price (OSP) for its medium sour crude may be reduced by about 40 cents a barrel in June, the survey showed.


OSP The official selling price of a basket of April-loading Malaysian crude oil (MCO) grades has been set at $91.59 a barrel, a price document issued by state oil company Petronas showed on Tuesday. SINGAPORE CASH DEALS Cash Dubai's premium to swaps fell 55 cents to $1.60 a barrel.
Seller-Buyer Price VITOL-SHELL 78.65 VITOL-TRAFIGURA 78.65 VITOL-PETROCHINA 78.65 VITOL-TOTAL 78.60 VITOL-TRAFIGURA 78.60 RELIANCE-PETROCHINA 78.60 BP-TRAFIGURA 78.60 RELIANCE-PETROCHINA 78.60 RELIANCE-PETROCHINA 78.60 GLENCORE-SHELL 78.60 VITOL-SHELL 78.60 EXXONMOBIL-TRAFIGURA 78.60


PRICES ($/BBL) CURRENT PREV SESSION DME OMAN 78.55 77.81 DME OMAN DIFF TO DUBAI 1.55 NA CASH DUBAI 78.60 79.74


ASIAN REFINERIES PetroChina Co Ltd's Harbin refinery will shut down its whole plant for 50 days of planned maintenance, starting from May 5, the refinery said in a statement on social media. The refinery, located in the northeastern Chinese province of Heilongjiang, has a processing capacity of 100,000 barrels per day (bpd) of crude oil. NEWS Freed from the most onerous of their COVID restrictions, China's tourists are set to boost the country's gasoline and jet fuel consumption next month as travellers for the May Day holiday take to the skies and hit the road. Russian exports of ultra low-sulphur diesel (ULSD) from the Baltic Sea port of Primorsk are set to fall by 29.5% month on month on a daily basis in May to 1.18 million tonnes, from 1.62 million tonnes scheduled for April, two traders said on Tuesday. U.S. crude oil exports rose more-than-expected last month, building on a record 4.5 million barrels per day in March, as Chinese refiners snapped up cargoes to meet rising fuel demand, according to ship tracking data and analysts. TotalEnergies SE restored normal production by Friday night at its 238,000 barrel-per-day (bpd) Port Arthur, Texas, refinery, people familiar with plant operations said on Monday. U.S. crude oil stockpiles are expected to have fallen for a third consecutive week, with gasoline and distillate inventories also seen lower last week, a preliminary Reuters poll showed on Monday.


For crude prices, oil product cracks and refining margins, please click on the RICs below.
Brent Dubai DME Oman Brent/Dubai EFS PRODUCT CRACKS
Fuel oil crack Gasoil crack Naphtha crack Complex refining margins (Reporting by Muyu Xu; Editing by Varun H K)


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