Qatar reduces the April al-Shaheen term crude price, sources claim

QatarEnergy, according to trade sources, has reduced the term price of al-Shaheen oil loadings in April from the highest premium seen in over two years.

Sources said that the term price for cargoes loaded in March was $3.50 per barrel above Dubai prices, a decrease from the $3.81 premium per barrel set by the March loading cargoes.

Last month, the price was a week after the U.S. introduced aggressive sanctions against Russian energy trade. This immediately increased oil prices and shipping charges.

Since then, although the market has slightly cooled down, it remains higher than before January.

Last week, the premiums for Middle East benchmarks dropped to $3 per barrel after rising to $5 per barrel a month earlier.

Qatar's latest term price was close to its highest level since December 2022, despite the decline.

Qatar sold Vitol a Qatar Land crude oil cargo for a premium of $2 per barrel over Dubai prices, according to the sources.

Sources declined to name themselves because they were not authorized to speak with the media. Normally, companies don't comment on commercial deals.

The cargoes total 500,000 barrels. (Reporting and editing by Muralikumar Aantharaman in Singapore, Savio D’Souza and Siyi Liu)

(source: Reuters)