Gulf Producers Intensify Oil Offerings: Kuwait and Qatar Lead Crude Sales

Qatar Energy today launched a tender to sell crude oil for July and August loading, marking what is likely its first such offering since the recent conflict between the United States and Iran intensified. The tender includes Al-Shaheen, marine, and land crude grades. Buyers are offered options for loading shipments or undertaking ship-to-ship transfers between Fujairah and Sohar, with the tender closing on June 29. This move comes as Middle Eastern producers ramp up oil supplies. Other producers are also active; Iraq's state oil marketer SOMO tendered yesterday for July Basra Heavy and Medium crude. Kuwait Petroleum Corporation (KPC) also put out a tender for July sales, while Abu Dhabi National Oil Company (ADNOC) sold at least 48 million barrels of crude this month through three tenders. Earlier this week, Taiwan's Formosa acquired two million barrels of Qatari Al-Shaheen. A shipping industry source reported today that Qatar Energy is seeking a Very Large Crude Carrier (VLCC) for a two-million-barrel consignment from Qatar to the Far East or India's west coast, under a short-term contract. Concurrently, a commercial source confirmed today that KPC successfully sold two million barrels of crude oil via a July delivery tender. The Kuwait Export Blend shipment was reportedly sold to an Indian end-user on a Free-On-Board (FOB) basis at the destination port, with the price undisclosed. KPC is among several Gulf oil producers increasing crude sales in recent weeks, following a preliminary agreement between the U.S. and Iran to de-escalate tensions and facilitate the reopening of the Strait of Hormuz.