Middle Eastern oil benchmarks, including Oman, Dubai, and Murban, experienced a significant decline on Monday due to market uncertainties surrounding the latest OPEC+ decision. Doubts over the compliance of voluntary cuts and fears of a supply surplus contributed to a six-month low in the spot premium for Dubai crude at $0.53 a barrel.

OPEC+ members, led by Saudi Arabia, agreed to a combined 2.2 million barrels per day voluntary cut for Q1 2024. However, concerns arose as countries like the UAE, Iraq, and Russia were observed producing above their allocated quotas. Brazilian President Luiz Inacio Lula de Silva stated that Brazil would only participate in OPEC+ as an observer, refusing full membership.

In Asia, Indian refiners resumed purchasing Venezuelan oil through intermediaries, potentially affecting demand for other heavy grades. Kuwait's al-Zour refinery announced full operational status, increasing refining capacity from 410,000 to 615,000 barrels per day.

Singapore cash deals saw Dubai's premium to swaps drop to $0.53 per barrel. The U.S., EU, and UK urged Liberia, the Marshall Islands, and Panama to enhance oversight on ships flying their flags to prevent transport of Russian oil exceeding price caps. Additional U.S. sanctions targeted entities and oil tankers related to the Russian oil price cap mechanism. Russia's Black Sea ports resumed operations after weather disruptions affected crude loadings in recent days.

SOURCE:GOOGLE