MIDDLE EAST OIL RAISES IN PREMIUM AS SUPPLIES FROM RUSSIA DETERIORATE

Spot premiums for Middle East oil have risen to their highest level in more than two years, as prices surged on strong demand from major importers China and India, which are seeking a replacement for supplies sanctioned by the Russian Federation and Iran.

QatarEnergy more than doubled its long-term price of al-Shaheen crude for March to $3.81 a barrel, above the previous month’s Asian benchmark in Dubai.

Totsa, the trading arm of France’s TotalEnergies, had previously bought two cargoes of Qatari oil for $3.70-$3.80, trade sources told Reuters.

In other deals, Unipec, the trading arm of China’s Sinopec, bought Qatar Marine’s March crude cargo through a QatarEnergy tender at a premium of just over $3 a barrel over Dubai prices, 10 times higher than sales for February delivery.

China’s Sinochem also bought Upper Zakum oil from Cepsa Abu Dhabi in March, and Indian refiner Hindustan Petroleum bought Iraqi Basra Medium from Litasco, a trader of Russia’s LUKOIL, at a premium of $1.90 over Dubai prices.

Premiums for Middle Eastern light crudes also rose. QatarEnergy sold onshore crude for March loading to Thailand’s PTT at a premium of more than $2 a barrel.