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RTRS:Middle East crude holds strength on exports to Europe
 
SINGAPORE, Sept 1 (Reuters) - Middle East crude values
remained firm on Thursday as shipments found their way to
Europe, where high prices were drawing Oman supplies into the
Mediterranean.
High prices for Atlantic basin crudes because of production
issues in the North Sea are rendering imports from the Middle
East attractive, at a time when requirements for the region's
crude increase in Asia ahead of the heating season.
Oman crude values for November cargoes were supported at a
premium of about 90 cents to Dubai quotes, up from 75 cents
earlier this week for October lots and discounts as deep as 30
cents last month when trading of October cargoes started.
Expectations that Libya would resume exports after rebels
took control of Tripoli reduced the premium of European
benchmark Brent over Middle East marker Dubai last month, but it
has now widened again with no clear resolution to the country's
civil war.

* TENDERS
- Russia's top oil producer Rosneft sold ESPO crude via
tender at the highest premium in four months as attractive
refining margins boost demand for the distillate-rich grade
across Asia.
- European trader Gunvor was heard to have purchased the lot
for loading Oct. 25-28 at a premium of about $5.20 a barrel to
Dubai quotes, although this could not be confirmed.
- That compares with cargoes sold at premiums of around
$5.10 over the past few days by Russia's fourth-largest oil
producer Surgutneftegaz and BP's venture in Russia, TNK-BP.

* EAST-WEST
- The Brent/Dubai Exchange of Futures for Swaps (EFS) for
October rose 10 cents to $5.14 a barrel at 0830 GMT, Reuters
data showed. As Libyan rebels took control of Tripoli last
month, it slid towards $4.50.
The front-month EFS on June 15 touched $9.20, the highest
intraday value since the spread reached a record of almost $12
in October 2004.



* DME OMAN
- October Oman traded on the DME shed 8 cents to a premium
of 91 cents to Dubai swap quotes at 0830 GMT, using the
settlement price for DME futures, the ICE one-minute marker for
Singapore and the Brent-Dubai EFS as calculated by Reuters.

* MARKET NEWS
- Russia's oil pipeline monopoly Transneft (TRNF_p.MM: Quote) and
China National Petroleum Corp (CNPC) will hold talks in Beijing
over disputed China's debt for Russian oil supplies, a source at
Transneft told Reuters on Thursday.
- China will exempt tariffs and value-added tax for five
more years on imported equipment, instruments, parts and special
tools that it could not make but are necessary in offshore oil
and gas production and onshore coal-bed methane gas production.

- Japan's total nuclear power plant utilisation rate fell to
a record low of 26.4 percent in August, a Reuters calculation
based on monthly trade ministry data showed on Thursday, with
public confidence in atomic energy decimated by the ongoing
crisis at the Fukushima Daiichi facility.

* CRACK SPREADS
- Gas oil's September crack eased 16 cents to a premium of
$17.63, while the October premium eased 5 cents to $18.12 a
barrel to Dubai crude.
- Fuel oil's September crack widened 26 cents to a discount
of $6.22 a barrel to Dubai crude, while the October discount was
also 21 cents weaker at $6.90.
- Naphtha's September crack to Brent inched up 9 cents to a
discount of $6.15, while the October discount narrowed 18 cents
to $5.83 a barrel.

* OUTRIGHT PRICES
- October ICE Brent LCOc1 was at $114 a barrel at 0830
GMT, down 2 cents from the same time on Wednesday.

(Reporting by Alejandro Barbajosa; Editing by Himani Sarkar)
Source