Page 14 - MEOG Week 20

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enjoying no domestic legitimacy and leaving the Syrian Arab Republic even more of a fiefdom to foreign powers. For the Arab world, a phase of Israeli-Russian hegemony would be just as antithetical as the past decade of hostile Iranian expansionism.
Russia contextualizes its Syrian policy within the 2017 Astana process (with Turkey and Iran), which symbolized the moment when Western and Arab parties were ignobly ousted from the Syrian arena. We would all rejoice at the ejection of the ayatollahs and Assads from Damascus.
however, any transition must be the starting point for an internationally brokered democratic process that restores Syria to its place in the Arab fold, with Syrians obtaining the opportunity for justice and the resources to return to their homes and rebuild their lives.
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Petrel Resources considers Opportunities in Iraq
Petrel Resources has announced that it is interested in the ‘fresh opportunities’ in Iraq thrown up by the turbulent oil price and political events of recent months.
In a statement, the company said that its Iraqi Director, Riadh Ani, is coordinating discussions with the Ministry of Oil in Baghdad to take advantage of the situation. PetreL
McDermott wins offshore engineering contract
McDermott International, Inc. on 18 May announced it has been awarded a sizeable contract from a Middle East customer to carry out front-end engineering and design (FEED)
work for offshore riser platform topsides. The scope includes the design of two
offshore riser platforms, as well as associated brownfield integration modifications
to existing facilities, which include the decommissioning of existing assets. The FEED contract will be fully executed from McDermott’s Middle East offices.
Work on the project will begin immediately, and the contract award will be reflected in McDermott’s second quarter 2020 backlog.
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry mCDermott
oIL
Swift OPEC+ cuts revive
premiums in Asia physical
oil market
Swift and bold output cuts by OPEC and its allies are boosting prices of physical oil barrels in Asia as supply tightens.
Premiums for a wide-ranging variety
of crude from Russia’s ESPO, Abu Dhabi’s Upper Zakum and Qatar’s Al-Shaheen have increased significantly in the Asian spot market since OPEC+ started reducing output this month in-line with its pledge to cut almost 10 million barrels a day. Supplies of more sulfurous oil from the Middle East that are favored by a majority of Asian refiners should begin to tighten due to the production curbs.
Demand is recovering in major oil consumers China and India, led by a rebound in gasoline and diesel consumption. Chinese refiners are seeing profits from turning crude into fuels, even as processors across much of the region including Singapore face negative margins. In spite of that, buyers are continuing
to scramble for cargoes after Saudi Arabia, Kuwait and the U.A.E. said they would reduce contractual supplies from June as they press ahead with planned curbs to support a market rebalancing.
“Refiners might be panicking now in
light of additional supply cuts and looking
to secure cargoes, especially as prices could start to rise,” said Michal Meidan, director of China Energy Program at Oxford Institute for Energy Studies. “Purchases seem to be getting ahead of the demand recovery,” potentially testing storage capacity in places like China.
In the latest trade of Russia’s ESPO crude, Surgutneftegas PJSC sold two cargoes for July loading at a premium of $2.50-$3 a barrel to the Dubai benchmark, according to traders who asked not to be identified. That compares with a discount of $4 or more just last month. Exxon Mobil Corp. also sold a Russian
Sokol cargo for late July loading at a higher premium.
For Middle Eastern grades, Exxon Mobil Corp. sold Upper Zakum for July loading
at a premium of $1.30-$1.50 a barrel to the grade’s official selling price, compared with a premium of 20-30 cents last month. The discount of Qatar’s medium-sour variety Al-Shaheen also narrowed more than 80% month-on-month for shipments that were awarded in its monthly tenders. bLoomberG
Oman oil prices show upward trend
The price of Oman oil continues to rise, with prices for delivery by next July reaching $36.06 USD on the Dubai Energy Market on Tuesday.
A statement issued online by the Oman News Agency (ONA) said, “The official price of Oman oil on the Dubai Energy Market for delivery next July reached $36.06 today.”
The prices witnessed an increase of 60 cents compared to Monday’s price of $35.46
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Week 20 20•May•2020