Qatar Energy Company intends to raise the official selling prices for Al-Shaheen crude for next April loading, after it recorded its lowest level in 21 months in March.
Qatar is scheduled to increase the future price of Al-Shaheen crude in April by about $1.21, compared to next March shipments.
Qatar Energy set the price of Al-Shaheen crude for April loading at a premium of $2.58 a barrel over the prices offered for Dubai crude, up from a premium of $1.37 a barrel over Dubai prices in March, which is the lowest level since June 2021.
The March cuts came after a premium of $1.50 a barrel over Dubai prices for February loading shipments, according to data seen by the specialized energy platform.
demand for oil
The rise in the price of a barrel of Qatari oil comes after an increase in spot premiums for Middle East crude this month; The market expects demand to rebound from the second quarter of the year, especially Chinese demand.
The decision also came after Qatar Energy sold two cargoes of Al-Shaheen crude for April loading through an immediate tender, Reuters reported.
The first shipment for April 1-2 loading sold at a premium of about $2.60 per barrel, likely to Mercuria, and the other, for April 28-29 loading, probably sold to a Philips 66 at a premium of about $2 per barrel.
Middle Eastern raw materials
Qatar Energy prices indicate that Middle East crude prices are expected to rebound in April after sharp declines since the summer peak.
Medium-sulphur crude prices rose during the current month, supported by increased purchases from China and the expected slowdown in the flow of Russian Urals crude to India, which competes with Middle Eastern grades.
The regular monthly bid from Qatar is seen as the market leader for medium sulfur crude oil in the Middle East; As the grade is one of the components of the Dubai basket of ores.
The expected premium is largely a function of the market structure, as Al Shaheen crude is seen as a guideline for Saudi Aramco to sell the price of Arab Light crude.
And Saudi Aramco had violated expectations, announcing the increase in the official selling prices for shipments of Arab Light Crude to its customers in Asia, Europe and the United States, during the month of March (2023).
And the Saudi company decided to raise the official selling prices for Arab Light crude to Asia by 20 cents to two dollars per barrel, above the average prices of the Sultanate of Oman / Dubai, according to the pricing document that was seen by the specialized energy platform.
Saudi Arabia raised all prices for European buyers by $2 a barrel, and most prices for the United States by about 30 cents.
Leave a Reply