The Asia-Pacific crude market slipped on Monday as higher volumes of crude from the United States are expected to put pressure on premiums of regional grades. However, the condensate market appears to be supported with Malaysia's Petronas selling its July-loading cargoes at higher premiums than previous months, traders said.
Malaysia's Petronas has sold 320,000 barrels between July 11 and July 20 loading Cakerawala condensate at a premium of about $3.40 to $3.60 to dated Brent, trade sources said. It last sold a June-loading Cakerawala condensate cargo to Exxon Mobil Corp at a premium of about $3 a barrel to dated Brent.
Malaysia's Petronas also sold 300,000 barrels of Muda condensate for loading between July 9 and July 15 at a premium above $2 a barrel to dated Brent, traders said.
The company skipped selling Muda condensate for loading in June, but sold a May-loading cargo to SK Energy at a premium of about $2.40 to $2.60 a barrel to dated Brent, traders have said. Brent's premium to Dubai swaps was at $3.28 per barrel, down 24 cents from the previous session.
Saudi Arabia and Russia are discussing raising Opec and non-Opec oil production by some 1 million barrels a day, sources said, weeks after US President Donald Trump complained about artificially high prices. Exxon Mobil Corp evacuated non-essential workers from the Lena production platform in the Gulf of Mexico ahead of Subtropical Storm Alberto, the company said.
A seasonal splurge has helped lift Asia's crimped gasoline refining profits out of a long slump, but higher crude prices and the rise of energy-efficient cars are set to leave margins stuck at historically weak levels, industry watchers say.
US energy companies added the most oil rigs in both a week and a month since February as drillers continued to return to the well pad with crude prices at their highest since late 2014.
Production at Libya's Arabian Gulf Oil Company (AGOCO) has returned to normal levels at 250,000 barrels per day (bpd) after output losses caused by power supply problems because of high temperatures, an official from the company said.
As a hard deadline set by Kinder Morgan Canada Ltd KML.TO for scrapping a key pipeline expansion looms, there is growing doubt among investors, contractors and government officials about reaching a deal to save the C$7.4 billion ($5.7 billion) project.