Qatar Energy Ups December al-Shaheen Oil Term Price

Qatar Energy raised the price for term cargoes of al-Shaheen crude oil loading in December to a one-year peak, trade sources said on Thursday, underpinned by the persistent OPEC+ production cuts and the escalation of Middle East tensions. The December price was hiked to US$3.25 a barrel above Dubai quotes, up from November's US$2.73 a barrel, reaching its highest level since December 2022.

Supply of medium sour crude has been tightened as top oil exporter Saudi Arabia extended its 1 million barrels per day output cut to end-2023, on top of a wider production reduction by the Organization of the Petroleum Exporting Countries (OPEC) and leading allies including Russia, known as OPEC+.

The conflict between Israel and Hamas group ignited fears over the broader geopolitical unease and endangered the stability of oil supply from the Middle East. The term price was decided after Qatar Energy sold three al-shaheen crude cargoes for December-loading via its monthly tender.

ExxonMobil, Mitsui and Petronas have purchased the three cargoes at a price range of US$2.68 to US$3.30 a barrel above Dubai quotes. The cargoes are to load during Dec. 2-3, Dec.19-20 and Dec.28-29. There are a total of 17 cargoes of al-Shaheen crude available for trade for December, up from 13 cargoes in the prior month, trading sources said.