“Qatar Energy sets lowest Al-Shaheen crude price in 27 months for July loading”

SINGAPORE (Reuters) – Qatar Energy set the price of term contracts for July-loading Al-Shaheen crude shipments at the lowest level since April 2021, as refining margins remain at low levels amid ample crude supplies despite the additional production cuts announced by the OPEC+ countries. .

Trade sources said on Thursday that Qatar had decided that the price of term contracts for Al-Shaheen crude for July loading would be at a premium of about 1.03 a barrel over Dubai prices, down from about $2.37 a barrel in the previous month.

The price of the term contracts was decided after five cargoes of Al-Shaheen crude for July loading were sold through tenders that closed earlier this week.

Commercial sources suggested that Total (EPA), Shell, Exxon Mobil, and Vitol were the ones that bought the shipments, and that they paid a premium between 80 cents and $1.07 a barrel over Dubai prices.

It added that there were 19 cargoes of al-Shaheen crude available for loading in July, compared to the usual 15-16 cargoes per month.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, in the bloc known as OPEC +, announced a reduction in production by an additional 1.16 million barrels from May until the end of the year. Qatar is not a member of this coalition.

(Prepared by Marwa Gharib for the Arabic Bulletin)