Latest news with #Murban
See - Sada Elbalad
4 days ago
- Business
- See - Sada Elbalad
Oil Prices Fall to Three-Week Low
Taarek Refaat Oil prices dropped on Friday to their lowest settlement levels in three weeks, pressured by signs of weakening economic momentum in both the United States and China, as well as growing indications of increased supply. However, optimism surrounding potential trade deals and policy shifts helped limit the decline. Brent crude futures fell by 74 cents, or 1.1%, to settle at $68.44 per barrel, while U.S. West Texas Intermediate (WTI) dropped 87 cents, or 1.3%, to $65.16 per barrel. Latest Oil Prices: WTI Crude • 65.16 -0.87 -1.32% Brent Crude • 68.44 -0.74 -1.07% Murban Crude • 71.20 -1.13 -1.56% Louisiana Light • 68.65 -1.51 -2.15% Bonny Light • 78.62 -2.30 -2.84% Mars US • 71.56 -1.02 -1.41% Gasoline • 2.097 -0.007 -0.34% Natural Gas • 3.110 +0.016 +0.52% These closing prices mark the lowest for Brent since July 4, and for WTI since June 30. For the week, Brent declined approximately 1%, while WTI posted a 3% loss. Economic data released on Friday painted a picture of slowing industrial activity. In the U.S., new orders for capital goods, a key indicator of business investment, unexpectedly declined in June, pointing to softening equipment spending in the second quarter. Meanwhile, the Chinese Ministry of Finance reported a 0.3% year-on-year decline in fiscal revenues during the first half of 2025, extending a months-long downward trend. These developments sparked renewed concerns about global oil demand just as seasonal factors typically drive consumption higher. On the supply side, markets are watching closely as the U.S. moves to ease restrictions on partners of Venezuela's state oil firm, potentially allowing a modest increase in exports from the heavily sanctioned OPEC member. Analysts at ING estimate Venezuelan exports could rise by over 200,000 barrels per day if the measure is enacted. Iran, another OPEC member under sanctions, also returned to talks with European powers in what it described as 'serious, candid, and detailed' discussions, a sign that further diplomatic engagement could eventually pave the way for increased Iranian crude in global markets. Both countries remain subject to international restrictions, but any shift in their production capacity or export volumes could swell global supply, undermining prices. Meanwhile, European Commission President Ursula von der Leyen confirmed she will meet U.S. President Donald Trump in Scotland on Sunday to discuss trade ties. EU officials expressed hope that a framework agreement could be reached, potentially boosting economic activity and long-term oil demand. Adding to market speculation, Trump said Friday he had a 'good meeting' with Federal Reserve Chair Jerome Powell, and hinted that the Fed may be open to cutting interest rates. A rate cut would reduce borrowing costs, potentially stimulating growth, and energy consumption. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters Arts & Culture "Jurassic World Rebirth" Gets Streaming Date News China Launches Largest Ever Aircraft Carrier Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Arts & Culture South Korean Actress Kang Seo-ha Dies at 31 after Cancer Battle Business Egyptian Pound Undervalued by 30%, Says Goldman Sachs Sports Get to Know 2025 WWE Evolution Results News "Tensions Escalate: Iran Probes Allegations of Indian Tech Collaboration with Israeli Intelligence" Arts & Culture Hawass Foundation Launches 1st Course to Teach Ancient Egyptian Language
See - Sada Elbalad
16-07-2025
- Business
- See - Sada Elbalad
Oil Prices Dip Amid Surprise Surge in US Inventories
Taarek Refaat Oil prices saw a slight decline on Wednesday, as a surprise increase in U.S. fuel inventories overshadowed signs of rising demand. The news also coincided with growing concerns over broader economic impacts from U.S. tariffs, which continued to weigh on the markets. Brent crude closed down by 19 cents, or 0.3%, at $68.52 per barrel. Meanwhile, West Texas Intermediate (WTI) crude dropped 14 cents, or 0.2%, ending the day at $66.38 per barrel. Latest Oil Prices: WTI Crude $66.62 +0.10 +0.15% Brent Crude $68.69 -0.02 -0.03% Murban Crude $69.93 -0.17 -0.24% Louisiana Light $70.89 -1.54 -2.13% Bonny Light $78.62 -2.30 -2.84% Mars US $71.88 -1.03 -1.41% Gasoline $2.153 -0.017 -0.78% Natural Gas $3.565 +0.042 +1.19% Despite the ongoing expectations for increased demand, the unexpected inventory rise sent a ripple through the oil markets. According to the Energy Information Administration (EIA), U.S. gasoline stocks surged by 3.4 million barrels last week, while market analysts had forecast a decrease of 1 million barrels. The data further showed that distillate inventories, which include diesel and heating oil, jumped by 4.2 million barrels—vastly surpassing expectations of a mere 200,000 barrel increase. These figures are notable, as they could signal an oversupply in the short-term, affecting global oil prices. Conversely, commercial crude oil stocks fell by 3.9 million barrels to 422.2 million barrels, a larger drawdown than the forecasted 552,000 barrel reduction. This drop in crude reserves could signal stronger demand or more effective supply chain management, balancing out some of the negative signals from the fuel inventories. Geopolitical Tensions and Trade Concerns Loom Amid these market shifts, the broader geopolitical climate remains a significant influence on oil prices. The threat of escalating trade wars, particularly from U.S. President Donald Trump's policies, continues to cloud market forecasts. Trump recently warned of imposing heavy tariffs on Russia in the coming 50 days unless a resolution to the ongoing Ukraine conflict is reached, adding to investor uncertainty. Additionally, the European Commission is preparing for potential countermeasures should talks with Washington fail. These tensions have raised concerns about possible disruptions in global trade, which could further strain energy markets. In the U.S., reports that President Trump might seek to remove Federal Reserve Chairman Jerome Powell led to a sharp rise in short-term U.S. interest rate futures, prompting investors to bet on potential rate cuts beginning as soon as September. Looking forward, the Organization of the Petroleum Exporting Countries (OPEC) in its latest monthly report projected that the global economy would improve in the second half of the year, driven by stronger growth in China, India, and Brazil, alongside recovery in the U.S. and the European Union. In China, state-run refineries ramped up production after completing maintenance, responding to surging demand in the third quarter. Barclays estimates that China's demand for oil grew by 400,000 barrels per day in the first half of the year, reaching 17.2 million barrels per day. However, the oil market faces ongoing disruptions from geopolitical tensions in the Middle East. Drone attacks on oil fields in Iraq's Kurdistan region, now continuing for the third consecutive day, have caused a loss in production of approximately 140,000 to 150,000 barrels per day. This supply shortfall, along with other regional instability, continues to impact the overall balance of supply and demand. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters News China Launches Largest Ever Aircraft Carrier Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Arts & Culture South Korean Actress Kang Seo-ha Dies at 31 after Cancer Battle News "Tensions Escalate: Iran Probes Allegations of Indian Tech Collaboration with Israeli Intelligence" News Flights suspended at Port Sudan Airport after Drone Attacks Arts & Culture Hawass Foundation Launches 1st Course to Teach Ancient Egyptian Language Videos & Features Video: Trending Lifestyle TikToker Valeria Márquez Shot Dead during Live Stream
Bloomberg
09-07-2025
- Business
- Bloomberg
Abu Dhabi's Oil Giant Draws Trader Ire With Murban Supply Muddle
Confusion around Abu Dhabi National Oil Co.'s supply of its flagship crude grade for this month has left traders frustrated and questioning official messaging around output. At the heart of the issue is predictability. Traders say Adnoc needs to give consistent signals about volumes to enable a stable physical-trading framework. Abu Dhabi also has ambitions for Murban to become a regional benchmark, establishing futures contracts on a regulated exchange four years ago.
Business Recorder
04-07-2025
- Business
- Business Recorder
Discount on Russian Urals oil shipped to India is smallest since 2022, traders say
MOSCOW/NEW DELHI: Discounts for Russia's flagship Urals crude oil for delivery to Indian ports in August shrank to their narrowest levels since 2022 amid high demand and shrinking spot supply, three traders in the grade's market said on Friday. Narrowing discounts and lower supply of spot Russian barrels will push Indian refiners to look for alternative oil like United Arab Emirates' Murban or U.S. West Texas Intermediate (WTI) grades, traders said. The narrowing discount shows how Moscow is managing to keep its oil sales up despite Western sanctions, while its discounted oil is getting more expensive than before, though still cheaper than alternatives. Spot discounts for Urals crude narrowed to $1.70-2 per barrel to dated Brent on delivery ex-ship (DES) basis on average for cargoes arriving in India in August, from $2 to $2.50 per barrel to dated Brent on DES basis in July, the traders said. That is the narrowest discount for Urals oil cargoes to dated Brent in Indian ports since the Ukraine war broke out in 2022. Meanwhile, as the Russian oil grade is traded against Brent benchmark, its outright price has been mostly below the West's $60 per barrel price cap since April this year, allowing Western companies to provide shipping and insurance service for the barrels. India's industrial output growth slows to nine-month low in May Urals oil prices are supported by high demand in India and Turkey, the two largest buyers of the grade, traders said. Turkey's imports of Russia's Urals crude rose in June to their highest level since May 2024 on healthy refinery margins and seasonal demand for motor fuels, LSEG data showed. Meanwhile, Urals oil loadings are set to decline in July from June amid higher refinery runs in Russia. Russian oil supply is also set to decline in August amid a planned shutdown for maintenance of output on the Sakhalin-1 project that exports Sokol oil. India has been the largest buyer of Russian seaborne crude after Moscow diverted its energy supply away from the European Union, which imposed a ban late in 2022. Several Indian refiners that normally buy Russian oil on the spot market are not getting enough Urals oil for delivery in August, the sources said. India is exploring building three new strategic oil reserves to boost its emergency stockpile and strengthen energy security. Large volumes of Russian Urals oil are shipped to India under the deal between the country's largest private refiner, Reliance Industries, and Russian oil giant Rosneft last year, limiting the crude offered in the spot market, traders said.
Arabian Post
27-06-2025
- Business
- Arabian Post
UAE Supply Cut Prompts Murban Derivatives Losses for Oil Majors
A decision by Abu Dhabi National Oil Company to slash July shipments of its flagship Murban crude has led to significant trading losses for equity partners hedging their positions, with estimates reaching $12 per barrel. The move stunned major stakeholders, including BP Plc and TotalEnergies SE, forcing abrupt reshuffling in the derivatives market and weighing on profitability metrics. The volume cut, amounting to approximately 3–4 million barrels or around two days of production, was effected unevenly across equity holders—reducing cargoes by between 5% and 40%, according to industry sources. Term buyers under long-term contracts were reportedly unaffected, indicating a strategic move to preserve foundation relationships while squeezing discretionary volumes. This has created a hedging mismatch: partners had positioned in futures and options to offset anticipated Murban deliveries, but actual supply fell short. The result: mounting mark‑to‑market losses on paper positions, with some market estimates as high as $12 per barrel—a steep decline considering thin typical margins. ADVERTISEMENT Murban crude, trading via ICE Futures Abu Dhabi since March, has been gaining prominence as a Middle East light crude benchmark. However, the recent cut has triggered volatility in its futures market. While spot premiums had previously eased due to ample supply and rising output post-OPEC+ easing, this supply setback has reversed some of that trend. The background to the decision lies in ADNOC's broader strategic recalibration. In late May, the company downgraded its projected Murban export capacity from 1.76 mb/d to 1.61 mb/d through May 2026—choosing to retain more crude for refining and domestic consumption. Analysts suggest this could reflect a drive to optimise margins via Ruwais refinery integration, as well as to better balance global market positioning. Market reaction was swift. Murban spot premiums fell to six‑month lows in Asia, even as export levels surged earlier this year in a bid to undercut competing heavier Middle Eastern grades. Yet the supply curtailment prior to July led to retreating premiums and amplified uncertainty among refiners and traders. BP and TotalEnergies, two of the most significant equity partners, have reportedly taken the hardest hit. With pre‑hedged positions now misaligned to actual cargoes, both companies face pressure to unwind derivatives, likely at a loss. Platts estimates suggest losses could total up to $12 per barrel—potentially eroding tens of millions of dollars in trading gains. These developments underscore the evolving risk profile of Murban as a benchmark. Its growing adoption, underscored by record trading volumes on exchanges such as ICE and Platts MoC, has attracted global attention. Yet supply-side control remains firmly in ADNOC's hands—a stark contrast to more decentralized benchmarks like Brent or WTI—raising questions about market predictability. ADVERTISEMENT The scenario highlights divergent strategies among Murban's partners: equity holders dependent on predictable allocations, versus term buyers whose contractual priority provides insulation from short-term supply shifts. It also accentuates the complexities that major oil trading desks face when aligning physical logistics with financial hedging. Analysts are cautioning that such volatility may influence future demand for Murban derivatives. Omar Najia of BB Energy has previously noted that futures liquidity depends heavily on consistent physical volumes; erratic supply cuts could impede long-term development of a robust trading framework. ADNOC, for its part, has yet to publicly comment on the allocation adjustments for July cargoes. The lack of transparency is typical of the company's market posture, rooted in a strategy that increasingly blends output management with integrated downstream optimisation. Market observers are now eyeing two key developments: first, how quickly ADNOC will restore shipments to original estimates; second, how equity partners will recalibrate hedging approaches to accommodate supply-phase volatility. The shock to trading positions could also spark a reassessment of Murban's maturity as a benchmark. While its rise has been meteoric—becoming the cheapest medium-sour crude in key Asian benchmarks earlier this year, prompting record cargo allocations via Platts MoC —the latest contraction exposes vulnerabilities inherent in single-provider control. Equity partners are said to be preparing for tighter cooperation and improved supply forecasting. Speculators suggest that future terms may include contractual safeguards or compensation clauses to protect those hedging against supply deficits. This episode marks a defining moment for Murban's financial architecture. Traders and refiners will be watching closely to see whether this diversion is an isolated incident or the beginning of recurring supply-management interventions. Either way, it signals the growing pains of what aspires to be a global oil benchmark—one still subject to the strategic impulses of its originator.
