Middle East Crude-Dubai rebounds; trading momentum edges up

Middle East crude benchmark Dubai's discount narrowed on Friday, after widening sharply in the previous session, though still holding steady in a steep discount.

Oman and Murban differentials also inched up day-on-day. Meanwhile, trading momentum picked up on the spot window, with more deals and a cargo delivery emerging versus the previous day.

Broader oil markets were stable, with Brent and WTI little changed before a long holiday weekend in the U.S.

Traders held on to hopes that attempts to secure peace in the Middle East between the U.S. and Iran would succeed.

SINGAPORE CASH DEALS

Cash Dubai's differential to swaps rose 67 cents to a discount of $3.51 a barrel.

Vitol will deliver one September-loading Oman crude cargo to Trafigura following the deals.

PRICES ($/BBL)

REFINERY

U.S. oil refiners are expected to have about 417,000 barrels per day of capacity offline for the week ending July 3, decreasing available refining capacity by 1,000 bpd, research company IIR Energy said on Friday.

NEWS

Oil shipments from Russia's western ports hit a record high in June and are expected to maintain that level in July as ongoing drone attacks on domestic refineries force Moscow to boost crude exports, three trade and industry sources said.

Kuwait's crude oil production rose sharply to 1.65 million barrels per day in June from 580,000 bpd in May, a source familiar with the matter told Reuters on Thursday, as the OPEC member boosts exports through the Gulf following the U.S.-Iran interim peace agreement.

Europe is taking tougher action against tankers falsely using Cameroon's flag registry to transport Russian oil, including boarding vessels at sea, prompting Cameroon to dump 39 such vessels from its ship registry, according to officials and documents.

Traders have sold gasoline produced by Indian refiner Nayara Energy to Russia, which is grappling with fuel shortages triggered by Ukrainian attacks on its energy infrastructure, two sources with direct knowledge of the matter said.

Canada announced plans to build a new oil pipeline from Alberta to the Pacific coast, which would give the world's fourth-largest oil producer greater capacity to export to Asia and ease its reliance on the United States.

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