Sources in oil trading reported today that QatarEnergy has raised the price of October-loading Qatar Marine crude shipments in fixed contracts to its highest level in four months, amid rising demand for oil from the Middle East, after Saudi Arabia extended its voluntary production cut. QatarEnergy set the price for October at a premium of $2.10 per barrel over Dubai's quoted prices, which is an increase of 42 cents from the September premium of $1.68 per barrel, reaching its highest level since June.
The premiums for spot prices of high-sulfur Middle Eastern crude have remained strong this month, supported by concerns over supply scarcity after Saudi Arabia, the world's largest oil exporter, extended its voluntary production cut of one million barrels per day through September. This occurred despite weak Chinese economic data putting downward pressure on the global benchmark crude prices, Brent and West Texas Intermediate.
The fixed-term contracts were determined after QatarEnergy sold three shipments of Qatar Marine crude for October loading in its monthly tender. The total number of available Qatar Marine crude shipments for October remains the same as in September at 16 shipments, but QatarEnergy offered two fewer shipments compared to the previous month. Shell, Unipec, and Vitol likely purchased the three shipments in the tender at a price range of $1.90 to $2.11 per barrel over Dubai's quoted prices.
