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Market Chatter: Observed Middle Eastern Crude Sales Indicate Recovery as Confidence Grows

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Qatar's oil sales are picking up amid a gradual reopening of the Strait of Hormuz with a shipment of Al-Shaheen grade sold by Mercuria Energy Group to Taiwan's Formosa Petrochemical Group, Bloomberg reported on Thursday, citing traders with knowledge of the transaction.

This, plus the sale of Marine and Land grades to an Indian refiner last week, are the first observed sales of Qatari crude since the start of the Iran war, though Qatar has made more headway in restoring production of liquefied natural gas, the article said.

More tanker activity has also been observed near Qatar's Ras Laffan facility, with a Greek-owned supertanker there now loading 2 million barrels of crude from the Al-Shaheen floating storage and offloading terminal, the article said, based on ship tracking data.

An LNG tanker owned by Abu Dhabi National Oil, known as Adnoc, has also arrived in the Persian Gulf, Bloomberg reported. The Umm Al Ashtan is located next to Adnoc's Das Island LNG export plant after not broadcasting a signal for close to two weeks, the article said.

It noted that more vessels are switching on their transponders for crossings into and out of the Persian Gulf, across the Strait of Hormuz chokepoint, as confidence grows while Iranian and US negotiators work to a 60-day schedule to reach a lasting peace agreement.

Neither QatarEnergy nor Adnoc immediately replied to Bloomberg's requests for comment.has emailed the companies and also Mercuria Energy Group and Taiwan's Formosa Petrochemical Group, seeking comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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