US President Donald Trump on Tuesday said he backed the idea of a diesel export ban as a way to lower prices that have hit record highs due to a global supply shortage. But analysts and market watchers warn that such a measure would do little to ease high energy prices, and could worsen supply and economic disruptions around the globe.
Saudi oil giant Aramco plans to reorganise its business to create a new gas division with an eye on possible listings of business units in the future to raise cash, two sources with knowledge of the matter told Reuters.
Spot tender activity and Dubai cash deals
Taiwan's Formosa Petrochemicals has bought 2 million barrels of Oman crude for December loading via a tender, trade sources said on Wednesday.
Formosa bought the cargo at a premium of about $4 a barrel to November Dubai quotes on a free-on-board basis from a major, they said.
Iraq has launched a tender to sell Basrah Heavy oil through a ship-to-ship transfer near the Omani coast, outside the Strait of Hormuz, a tender document showed.
The 2-million-barrel cargo is offered free on board for loading between September 27 to 30, it said.
The tender is valid until Thursday.
Iraq's state-run SOMO is seeking bids linked to relevant pricing benchmarks, it said.
In Singapore cash deals, Cash Dubai's premium to swaps rose 34 cents to $18.47 a barrel.
Unipec will deliver two November-loading Murban crude cargoes, one to ExxonMobil and one to Trafigura following the deals.
Prices showed GME Oman at $110.19 a barrel versus $110.22 in the previous session, GME Oman diff to Dubai at $18.76 versus $17.15, and Cash Dubai at $109.90 versus $111.20.
Benchmarks edge higher as supply outlook stays uncertain
SINGAPORE, Sept 23 (Reuters) - Spot premiums for Middle East crude benchmarks Oman, Dubai and Murban rose slightly on Wednesday after losses in the previous four sessions, amid supply outlook uncertainty.
US President Donald Trump warned on Tuesday that he could annihilate Iran if there is no deal to end the war, but also suggested an agreement could come soon amid a diplomatic push at the UN.
"I have a big decision to make," Trump said in a speech at the UN General Assembly in New York.
Traders are also watching the loading situation at Yanbu after Saudi Arabia restarted operations at its East-West Pipeline to the Red Sea.
Saudi Arabia on Tuesday also offered more barrels to Asian refiners for lifting from locations outside of the Strait of Hormuz.
XLE•
