Qatar Energy Company intends to raise the official selling prices for Al-Shaheen crude, loading next June, after their decline in next May.
Qatar is scheduled to raise the future price of Al-Shaheen crude in June by about $0.36 compared to next May shipments, according to data seen by the specialized energy platform.
Qatar Energy Company set the price of Al-Shaheen crude shipments for June loading at a higher level than May, amid expectations of an increase in oil demand for the summer amid a shortage in supply after the OPEC + alliance agreed to cut production.
The price of a barrel of Qatari oil
Qatar Energy set the price of Al Shaheen crude in June at a premium of about $2.37 a barrel over Dubai crude, up from about $2.01 a barrel the previous month.
The price determination came after the sale of 4 shipments of Al-Shaheen crude for June loading through a tender that closed this week, Reuters reported.
Malaysia’s Petronas and China’s PetroChina won shipments in a price range of $2-2.4 a barrel above Dubai crude prices.
The regular monthly bid from Qatar is seen as the market leader for medium sour crude oil in the Middle East; As the grade is one of the components of the Dubai basket of ores.
To a large extent, expected premiums are a function of market structure; Al-Shaheen crude is seen as a guideline for Saudi Aramco for the selling price of Arab Light crude.
OPEC+ cuts
Qatar Energy’s decision to raise the price of Al-Shaheen crude comes in the wake of the announcement by the OPEC+ coalition, which includes the Organization of the Petroleum Exporting Countries (OPEC) and allies from abroad led by Russia, of additional production cuts until the end of 2023.
The cuts prompted oil producers in the Middle East to raise official selling prices for cargoes loaded in May and June, and also sent prices higher in the spot market.
In its monthly report issued today, Friday, April 14, the International Energy Agency expected global oil demand to grow by two million barrels per day in 2023 to a record level of 101.9 million barrels per day, driven by increased consumption in China after the lifting of Corona restrictions.
The agency also expected a slowdown in global oil production growth to 1.2 million barrels per day, compared to 4.6 million barrels per day in 2022, and non-OPEC + countries are leading the increase by about 1.9 million barrels per day, led by the United States and Brazil, while the production of the OPEC alliance is expected to decrease. + by 760 thousand barrels per day in 2023.
Leave a Reply