Skip to content Skip to Search
Skip navigation

QatarEnergy raises June crude price on high demand

Opec Russia Reuters/Angus Mordant
Saudi Arabia is widely expected to roll over a voluntary oil cut of 1m barrels per day for a fourth consecutive month into October

State-owned QatarEnergy set the term price for cargoes of Al Shaheen oil loading in June at a higher level than for May, indicating stronger demand for crude for the summer amid tightening supply after producers agreed to cut output.

Qatar set the price for June cargoes at a premium of about $2.37 a barrel above Dubai quotes, up from about $2.01 a barrel the previous month, trading sources said on Friday.

The term price was decided following the sale of four cargoes of June-loading Al Shaheen crude via a spot tender which closed earlier this week.

Trading sources said Malaysia’s Petronas and PetroChina won the cargoes at a price range of about $2-$2.40 a barrel above Dubai quotes, the sources said.

The higher trades follow the announcement from the Opec and producers such as Russia, known as OPEC+, that they would carry out additional output cuts for the rest of 2023. That prompted Middle Eastern oil producers to raise their official selling prices for June-loading cargoes and drove up spot market prices.

Companies normally decline to comment on their trading activities.  

Saudi Aramco has told at least four customers in North Asia they will receive full contract volumes of crude oil in May, Reuters reported, citing informed sources.