Middle East crude benchmarks - Oman, Dubai and Murban - strengthened on Thursday as tensions between the United States and Iran intensified, pushing oil prices higher after a provocative statement from the U.S. president.
Markets reacted when the U.S. president said the United States would strike Iran "very hard tonight" and asserted that Washington would soon take control of Iran's oil and gas infrastructure and markets. The remarks contributed to price gains across the region's benchmark crudes.
At the same time, trade-source reports indicate changes in shipments and refinery purchasing that further underpinned market attention. Saudi Aramco (TADAWUL:2222) is reported to plan shipments of roughly 12 million barrels of oil to customers in China for July loading - a level Reuters cited as a record monthly low of about 387,096 barrels per day, according to trade sources.
Separately, Reuters reported that Sinopec (SHA:600028) did not buy any Saudi crude for a second consecutive month, a further sign of shifting refining purchase patterns in the Chinese market.
In India, state-run Hindustan Petroleum Corp acquired 4 million barrels of Murban crude from the United Arab Emirates for August delivery. The barrels were purchased from Totsa, the trading arm of TotalEnergies, and from Mercuria, according to the same reporting.
These developments occurred in close temporal association with the uptick in benchmark prices. Market participants focused on the potential immediate impacts of geopolitical rhetoric on physical flows and buying behaviour, while published shipment plans and reported refinery purchases highlighted concrete changes in crude allocation for July and August loadings.
Details reported by trade sources and through trade reporting agencies show the following concrete movements:
- Saudi Aramco's planned July loadings to China totaling roughly 12 million barrels, noted as a record monthly low equivalent to about 387,096 barrels per day.
- Sinopec did not purchase Saudi crude for the second month running.
- Hindustan Petroleum bought 4 million barrels of Murban crude for August delivery from Totsa and Mercuria.
While price direction moved higher on Thursday in response to the geopolitical statements, the reported shipment and purchase details provided specific, contemporaneous shifts in crude flows and refiner activity for July and August.
Observers and market participants will note both the rhetoric and the physical-trade reports as factors affecting near-term benchmark movements and refining procurement, particularly across oil and gas production, trading, and refining sectors.