Middle East Crude-Benchmarks rise; Saudi Arabia may raise June OSPs

Middle East crude benchmarks Oman, Dubai and Murban rose on Monday with trade for the month winding down, while traders expect Saudi Arabia to raise prices for June cargoes next month.

SAUDI OSP PREVIEW

Top oil exporter Saudi Arabia may raise prices for most of the crude grades it sells to Asia in June to their highest levels in five months after Middle East benchmarks strengthened this month, trade sources said on Monday.

The June official selling price (OSP) of flagship Arab Light crude may rise by 70 to 90 cents to close to a $3 per barrel premium to the average of Dubai and Oman quotes, seven refining sources said in a Reuters survey, which would be the highest level since January.

Most respondents expect June OSPs for Arab Medium and Arab Heavy to rise on par with Arab Light, supported by tight supply amid OPEC+ cuts and robust fuel oil margins.

However, strong light crude supply and weak naphtha margins are expected to limit price rises for Arab Extra Light to 30-50 cents in June, lagging gains by other Saudi grades, respondents to the Reuters survey said.

ASIA-PACIFIC CRUDE

Glencore offered a June-loading cargo of Miri crude on Platts window. The offer was made at a premium of $5.10 a barrel to dated Brent and was subsequently reduced to $4.50, traders said, but it did not draw any buyers.

Regional grades have come under pressure amid ample supply in the Atlantic Basin.

Miri crude was trading near record levels of more than $11 a barrel above dated Brent for an April-loading cargo before easing to a premium of $5-$6 a barrel for a May-loading cargo last month, traders said.

SINGAPORE CASH DEALS

Cash Dubai's premium to swaps rose 18 cents to $2.27 a barrel.

PRICES ($/BBL)

NEWS

Mexican state oil company Pemex is reversing crude exports cuts of at least 330,000 barrels per day (bpd) planned for May amid a smaller-than-expected oil demand by the company's domestic refineries, two sources close to the decision said on Friday.

Financial details of Shell's SHEL vast oil and gas trading business are some of the company's closest-held secrets. Documents in a lawsuit filed by a former employee, however, revealed its U.S. crude trading regularly earns around $1 billion every year.

China's Sinopec posted an 8.9% decline in its first-quarter profit, as rising raw materials costs and more competition hurt its petrochemical business, offsetting higher fuel sales and oil prices.

Saudi oil giant Aramco is exploring the formation of a joint venture in the Saudi Aramco Jubail Refinery Company (SASREF) with Chinese partner Rongsheng Petrochemicals, Aramco said in a statement on Saturday.

Vitol has agreed to charter two supertankers to deliver crude oil to Nigeria's giant Dangote refinery from the U.S. in May, according to a shipping source and fixtures data this week.

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