Middle East Crude Benchmarks Rebound on Strong Indian Demand
Middle East crude benchmarks Oman, Dubai, and Murban rebounded due to robust spot cargo demand from India. India's Mangalore Refinery bought 2 million barrels of Abu Dhabi Murban for January, shunning Russian oil, while HPCL also sought crude. This strong Indian demand, alongside Vietnam's purchase of US WTI, signifies active crude markets. Separately, Sinochem's Quanzhou refinery began maintenance, and geopolitical tensions in Russia and Venezuela, along with China's masked Iranian oil imports, also featured in energy-related news.
Middle East crude benchmarks, including Oman, Dubai, and Murban, experienced a rebound on Monday, primarily driven by robust demand for spot cargoes from India. India's Mangalore Refinery and Petrochemicals Ltd (MRPL) demonstrated this trend by purchasing 2 million barrels of Abu Dhabi Murban crude for January loading via tender, pointedly avoiding Russian oil. This acquisition was made from BP at a premium of $3.50-$4 a barrel above Dubai quotes. Additionally, HPCL was seeking indicative offers for January crude delivery, further highlighting India's active participation in the market. Beyond India, Vietnam's Binh Son refinery also secured 1 million barrels of U.S. West Texas Intermediate crude for January delivery from Mercuria, indicating broader market activity.In related market developments, Cash Dubai’s premium to swaps increased by 22 cents to 68 cents a barrel, with 96 Dubai partials traded. On the refinery front, Sinochem’s Quanzhou Petrochemical announced a two-month maintenance period for its entire plant in southern China’s Fujian province starting November 25. The article also touched upon various geopolitical and industry-specific news, including a Ukrainian drone strike on a Moscow region power station, China's unusually large crude imports from Indonesia potentially masking sanctioned Iranian oil via Malaysia, Abu Dhabi conglomerate IHC’s interest in acquiring Lukoil’s foreign assets, and the United States' impending new Venezuela-related operations. Indonesian state energy firm PT Pertamina also plans to sell 100,000 barrels of gasoline to PT Vivo Energi Indonesia.
