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SINGAPORE: Qatar Energy raised the term price for cargoes of al-Shaheen crude oil loading in September, trade sources said on Friday, following a recent rise in Middle Eastern oil prices amid expectations of tight sour crude supply.

The September term price was set at $1.68 a barrel above Dubai quotes, up 60 cents from August’s $1.08 a barrel which was near the lowest level in 27 months.

Spot premiums for Middle Eastern crude strengthened this month after top oil exporter Saudi Arabia announced an extension of its voluntary output cut on top of a broader OPEC+ supply reduction deal.

Qatar Energy cuts July al-Shaheen oil price to 27 month low

The term price was decided after Qatar Energy sold five al-Shaheen crude cargoes for September loading via its monthly tender.

Totsa, the trading arm of TotalEnergies, likely bought three cargoes and ExxonMobil may take the balance two in the tender, the sources said.

The cargoes are to load on September 1-2, 15-16, 23-24, 25-26 and 26-27.

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