Qatar cuts al-Shaheen Crude Term Price for December - sources

Wednesday, October 19, 2022

Qatar Energy has reduced the term price for December-loading al-Shaheen crude oil to a premium of $4.19 a barrel above Dubai quotes after receiving lower bids in its tender, several trade sources said on Wednesday. 

This was down from a premium of $5.35 a barrel for November-loading cargoes. 

The price was set after the producer sold three December-loading cargoes in a spot tender. 

The first cargo for Dec. 1-2 loading was sold at a premium of about $4.40 a barrel while the remaining two, loading on Dec. 27-28 and 28-29, went to Chinese refiner Hengli Petrochemical at premiums of about $4 a barrel, the sources said. 

Spot premiums for Middle East crude slipped this week on lacklustre demand from China and as the United States plans to sell 15 million barrels of oil from reserves in December. 

Qatar Energy has also sold a December-loading Qatar Land crude cargo via a tender at a premium of $4.50-$4.60 a barrel above Dubai quotes, likely to Reliance Industries, they said. 

Prior to the tender, Qatar Land crude was sold at premiums closer to $5 a barrel, the sources added.

 (Reporting by Florence Tan; Editing by Tom Hogue and Christian Schmollinger)

Categories: Energy Middle East Industry News Activity Production

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