Qatar Energy Company intends to reduce the official selling prices for Al-Shaheen crude for next May loading, after its rise in next April.
Qatar is scheduled to reduce the future price of Al-Shaheen crude in May by about $0.57, compared to next April shipments.
Al-Shaheen crude prices recorded their lowest levels in 21 months this March, according to data seen by the specialized energy platform.
Qatari oil prices
Qatar Energy has set the price of Al-Shaheen crude for May loading at a premium of $2.01 per barrel over quoted prices for Dubai crude, down from a premium of $2.58 per barrel over Dubai prices in April.
Shipments of Qatari oil in March are being sold at a premium of $1.37 a barrel over Dubai prices, the lowest level since June 2021.
The cuts in March came after a premium of $1.50 a barrel over Dubai prices for last February loading shipments, according to data seen by the specialized energy platform.
The price of a barrel of Qatari oil was determined after the sale of 4 shipments of Al-Shaheen crude in May through bids that closed this week, Reuters reported.
world oil prices
The decline in the price of a barrel of Qatari oil comes after sharp declines in global oil prices. Brent crude futures for next May recorded their lowest level in 15 months, affected by the collapse of banks in America.
And crude oil prices recorded, during yesterday, Wednesday, the third day of declines in a row; US crude fell below $70 a barrel for the first time since December 20, 2021.
Brent crude has lost nearly 10% since Friday’s close, while US crude has fallen about 11%, driven by fears of an economic recession, following the collapse of the US Silicon Valley bank.
Qatar Energy prices indicate that Middle East crude prices are expected to decline in May after increases in shipments in April.
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.
Expected premiums are largely a function of market structure, as Al-Shaheen crude is seen as a guideline for Saudi Aramco’s selling price of Arab Light crude.
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