Oman jumps as China reviews fuel export quotas

Prices of Middle East crude benchmark Oman jumped on Thursday on hopes that China will adjust its refined fuel export quotas, boosting its crude oil demand.

The spot premium of Oman rebounded on Thursday to $5.15 a barrel over the Dubai quotes, after falling for seven consecutive sessions.

Oman prices are mainly supported by Chinese demand.

China may tweak a proposed sharp increase in refined fuel export quotas for this year by extending the plan into next year, as it weighs the benefits to the economy of higher exports against low domestic stocks and operational challenges, four sources told Reuters.

The market has been widely expecting China to release up to 15 million tonnes of refined fuel export quotas for the rest of the year.

OPEC

Leading OPEC+ members have begun discussions about an oil output cut at the group's next meeting on Oct. 5, three sources told Reuters.

One OPEC source told Reuters a cut was "likely", while two other OPEC+ sources said key members had spoken about the topic.

INDIA

Indian companies are still buying Russian oil using dollars after Dubai's Mashreq Bank declined to handle payments from at least two refiners in Emirati Dirhams as requested by the supplier, according to three sources familiar with the matter.

SINGAPORE CASH DEALS

Cash Dubai's premium to swaps dipped 18 cents to $4.37 a barrel.

PRICES ($/BBL)

NEWS

An agreement on the next sanctions package against Russia is expected before next week's EU summit, or at least major parts of the package, an EU official told Reuters.

Japan's oil refinery capacity needs to be trimmed further as local demand continues to fall by 2%-3% a year because of a shrinking population, Shunichi Kito, the new president of the Petroleum Association of Japan (PAJ) said on Thursday.

A heavy oil refinery turnaround season in Europe this autumn, plus French strike action, is set to push diesel prices higher and tighten supplies ahead of a European Union ban on Russian refined products which is due to come into force early next year.

U.S. energy executives are fearful an economic recession will cut oil and gas demand, complicating the picture for an industry already beset by supply chain issues and rising costs, according to a survey released on Wednesday by the Federal Reserve Bank of Dallas.

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