On Thursday, spot premiums for Dubai and Murban crude increased, while Oman declined due to renewed supply concerns linked to U.S. actions on Venezuelan oil operations. Eni faced a profit dip from lower energy prices, and sanctions on Serbian oil were temporarily lifted. Additionally, Iraqi Kurdistan and the federal government settled their oil disputes, allowing Russian firms to resume operations.
On Thursday, spot premiums for Middle East crude benchmarks, specifically Dubai and Murban, increased, while Oman saw a decline in its premium. This upward movement in oil prices follows two consecutive days of losses, primarily driven by fresh supply concerns after U.S. President Donald Trump revoked a prior license for Chevron to operate in Venezuela, citing insufficient electoral reforms under President Maduro’s government.
In the Singapore cash market, Cash Dubai’s premium to swaps rose by 19 cents to $3.37 a barrel. Noteworthy cash transactions included Reliance selling to Vitol at $75.95 per barrel and multiple sales by Unipec to Vitol and Gunvor at $76.00. In contrast, GME Oman’s price fell to $74.95 from $75.79 in the previous session, indicating a broader shift in pricing dynamics.
Eni, an Italian energy company, reported a 46% decline in its adjusted net profit for the fourth quarter, attributing the drop to reduced energy prices alongside challenges in its refining and biofuel sectors. Additionally, the U.S. has temporarily lifted sanctions on NIS, a Serbian oil company controlled by Russian interests, allowing it to continue operations at the nation’s sole refinery.
Meanwhile, Singapore’s middle distillates inventories decreased for the second week in a row as net exports rose, despite higher diesel and gasoil imports. In a significant development, both Iraqi Kurdistan and the federal government reached an agreement to resolve their oil disputes, enabling Russian firms to potentially resume their projects in the region, according to TASS.
For more detailed insights regarding crude pricing, product cracks, and refining margins, please refer to the respective RICs related to Brent, Dubai, GME Oman, and other market indicators.
In summary, the rise in Dubai and Murban crude premiums indicates a tightening market influenced by geopolitical events, specifically U.S. policies regarding Venezuela. Eni’s profit drop highlights the impact of market volatility on energy companies, while temporary sanctions relief for Serbian oil reveals shifting operational dynamics in the region. Overall, significant negotiations in Iraq suggest potential for renewed investment activity.
Original Source: www.tradingview.com
