Qatar Energy lowers the price of Al-Shaheen crude for July loading to the lowest level in 27 months

Qatar Energy Company set the price of term contracts for Al-Shaheen crude shipments for July loading at the lowest level since April 2021, as refining profit margins are still at low levels amid abundant crude supplies despite the additional production cut announced by the OPEC + coalition countries.

Trade sources said today, Thursday, that Qatar decided that the price of term contracts for Al-Shaheen crude for July loading will 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 the sale of five cargoes of Al-Shaheen crude for July loading through tenders that closed earlier this week, according to Reuters.

Commercial sources suggested that it was “Total”, “Shell”, “Exxon Mobil” and “Vitol” companies that bought the shipments, and that they paid a premium between 80 cents and $1.07 a barrel over Dubai prices.

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

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