Murban oil declined as Saudi Arabia’s crude sales to Asian refiners cut demand for the grade, with the discount to its benchmark widening to levels last seen in August 2010. The discount for Murban for August loading, produced by Abu Dhabi National Oil Co., to its official selling price widened 2 cents a barrel to 10 cents, according to data compiled by Bloomberg. That’s the deepest discount since Aug. 18. Qatar Land fell 1 cent a barrel to 21 cents below its official level, the biggest discount since Aug. 2, Bloomberg data showed. Saudi Arabian Oil Co., the world’s biggest state-owned oil producer, has contacted refiners in India and China offering them extra supplies of crude, said refinery officials who asked to remain unidentified because the negotiations are confidential. The processors are also shying away from the two grades as both Abu Dhabi National and Qatar Petroleum issued new official prices that are at the highest levels since July 2008 when compared with the benchmark Dubai crude price from publishing service Platts. The Land grade’s premium to Dubai for last month rose to $4.27 a barrel, according to Bloomberg calculations. Murban’s difference climbed to $5.22 a barrel. The higher levels mean refiners see both types as expensive relative to other Mideast grades. Oman crude for immediate loading fell 30 cents, or 0.3 percent, to $111.28 barrel, according to data compiled by Bloomberg. Dubai oil for loading in August declined 0.3 percent to $110.81. Murban decreased 0.3 percent to $115.68. The Brent-Dubai exchange for swaps for August narrowed $1.03 to $6.94 a barrel, according to data from London-based brokers PVM Oil Associates Ltd. The exchange for swaps for September narrowed 62 cents to $6.38 a barrel. Oman futures for August delivery fell $1.39 to $111.39 a barrel on the Dubai Mercantile Exchange at 5:29 p.m. Singapore time, with 1,028 contracts traded. The settlement price was at $112.24 at 12:30 p.m. in Dubai. To contact the reporter on this story: Christian Schmollinger in Singapore at christian.s@bloomberg.net To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net.

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