Middle East Crude-Benchmarks slide; Oman, Dubai in discounts

SINGAPORE, Jan 5 (Reuters) - Middle East crude benchmark premium of Oman flipped into a discount for the first time since December 2023 on Monday, as ample supplies weighed and trading remained thin.

It followed a flip of Dubai's premium to discount on Friday, which was also the first time in over two years. Dubai discount deepened on Monday.

Meanwhile, the eight-member OPEC+ kept oil output unchanged on Sunday after a quick meeting that avoided discussion of the political crises affecting several of the producer group's members.

The meeting came after oil prices fell more than 18% in 2025 — their steepest yearly drop since 2020 — amid growing oversupply concerns.

Oil prices fell on Monday as adequate global supplies offset concerns about supply disruptions due to the U.S. capture of Venezuelan President Nicolas Maduro in an audacious raid over the weekend. O/R

SINGAPORE CASH DEALS

Cash Dubai's premium to swaps fell 31 cents to -44 cents a barrel.

PRICES ($/BBL)

NEWS

Venezuela's state-run oil company PDVSA has begun cutting crude production because it is running out of storage capacity due to an ongoing U.S. oil blockade that has reduced exports to zero, piling more pressure on an interim government trying to hang on to power in the face of U.S. threats of more military action.

The United States could raise tariffs on India if New Delhi does not meet Washington's demand to curb purchases of Russian oil, President Donald Trump said on Sunday, escalating pressure on the South Asian country as trade talks remain inconclusive.

Crude output in Venezuela is set to increase over a period of time following the dramatic U.S. strike and capture of its president, likely raising global supply and weighing on prices longer-term, oil analysts said.

Venezuela is unlikely to see any meaningful boost to crude output for years even if U.S. oil majors do invest the billions of dollars in the country that President Donald Trump promised just hours following Nicolás Maduro's capture by U.S. forces.

For crude prices, oil product cracks and refining margins, please click on the RICs below.

(Reporting by Siyi Liu in Singapore; Editing by Harikrishnan Nair)

((siyi.liu@thomsonreuters.com;))