Qatar Energy cuts Al-Shaheen crude price for July loading to the lowest level in 27 months, by Reuters

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: TTEF), Shell, Exxon Mobil, and Vitol were the ones that bought the cargoes, and that they paid a premium of 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 alliance.

(Prepared by Marwa Gharib for the Arabic Bulletin)