RIYADH: Oil prices rose in early Asian trade on Wednesday, paring losses from the previous session, as concern over tight supplies following reports of lower inventories in the US offset fears of lower demand from top oil importer China.
Brent crude futures rose 46 cents, or 0.51 percent, to $90.49 a barrel by 08.07 a.m Saudi time.
US West Texas Intermediate crude is at $83.69 a barrel, up 87 cents, or 1.05 percent.
Qatar cuts Al-Shaheen crude term price for December: sources
QatarEnergy has reduced the term price for December-loading Al-Shaheen crude oil to a premium of $4.19 a barrel above Dubai quotes after receiving lower bids in its tender, Reuters reported citing trade sources.
This was down from a premium of $5.35 a barrel for November-loading cargoes.
The price was set after the producer sold three December-loading cargoes in a spot tender.
The first cargo for Dec. 1-2 loading was sold at a premium of about $4.40 a barrel while the remaining two, loading on Dec. 27-28 and 28-29, went to Chinese refiner Hengli Petrochemical at premiums of about $4 a barrel, the sources said.
QatarEnergy has also sold a December-loading Qatar Land crude cargo via a tender at a premium of $4.50-$4.60 a barrel above Dubai quotes, likely to Reliance Industries, they said.
Prior to the tender, Qatar Land crude was sold at premiums closer to $5 a barrel, the sources added.
Spot premiums for Middle East crude slipped this week on lackluster demand from China and as the US plans to sell 15 million barrels of oil from reserves in December.
OPEC+ decision aimed at addressing market uncertainties: Malaysia
Malaysia said that the decision of the Organization of Oil Exporting Countries, and its allies, known as OPEC+, to cut oil production was unanimous, and made after taking into account the need to address market uncertainties.
Malaysia joins other OPEC+ countries this week in backing a steep cut to the group’s output target, after the White House accused Saudi Arabia of coercing some other nations into supporting the move.
“OPEC+ countries collectively took into consideration factors that include market fundamentals, particularly to address uncertainties in the global oil supply and demand situation,” Malaysia’s economy minister Mustapa Mohamed said in a statement issued on Tuesday.
He added: “In view of the prospect of prolonged uncertainties, Malaysia will continue our close collaboration with OPEC+ to ensure the stability of the global oil market.”
(With input from Reuters)
