SINGAPORE: Qatar Energy set the term price for cargoes of al-Shaheen oil loading in July at the lowest level since April 2021, as refining margins remained sluggish and crude supplies were ample despite an additional OPEC+ output cut.

Qatar set the price for July cargoes at a premium of about $1.03 a barrel above Dubai quotes, down from about $2.37 a barrel the previous month, trading sources said on Thursday.

The term price was decided following the sale of five cargoes of July-loading al-Shaheen crude via a spot tender which closed earlier this week.

Trading sources said Total, Shell, ExxonMobil and Vitol have likely won the cargoes, paying about 80 cents to $1.07 a barrel above Dubai quotes.

There are 19 cargoes of July-loading al-Shaheen available for trade, compared to about 15-16 cargoes in a normal month, they said.

The Organization of Petroleum Exporting Countries its allies announced they would cut an additional 1.16 million barrels of production from May to the rest of the year.

Qatar leads major Gulf markets lower on weak earnings

Qatar does not belong to the OPEC+ grouping. Spot premiums for Middle Eastern crude weakened this month due to thin refining margins at Asian refineries.

Some refiners, such as Taiwan’s Formosa, plan to lower operations despite upcoming maintenance.