RTRS:Middle East Crude-Oman at 3-mth high on Europe pull
SINGAPORE, Sept 2 (Reuters) - Middle East crude rose on
Friday sending Oman's premium to a three-month high as European
buyers drained supplies, boosting arbitrage flows opened by a
strong Urals market.
Three to four Oman cargoes for loading in September and
October were expected to head to the Mediterranean as refiners
there stock up on crude supplies in the run-up to the heating
season.
Spot Oman cargoes for loading in November were notionally
valued at a premium of $1 to Dubai quotes, the highest since
early June, up from 90 cents on Thursday and discounts as deep
as 30 cents last month. OMA-1Mmog-A
Some traders said larger-than-usual volumes of Iraqi Basrah
Light were also heading to the Mediterranean, tightening
supplies in the Mideast Gulf and leaving less for shipment to
Asia, where crude requirements are also rising seasonally.
The Dubai swaps also reflected a strengthening market, with
the premium of October swaps above the November contract at 27
cents, up from premiums of around 20 earlier this week. This
deeper backwardation, as this market structure is known, denotes
tighter supplies.
Traders were also awaiting publication of Saudi official
selling prices (OSPs) for October, which were expected to climb
across the board because of anticipated higher Asian demand.
* EAST-WEST
- The Brent/Dubai Exchange of Futures for Swaps (EFS) for
October fell 8 cents to $5.06 a barrel at 0830 GMT, Reuters data
showed. 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 rose 11 cents to a premium
of $1.02 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
- China has put the brakes on oil and gas investments in
Iran, drawing ire from Tehran over a pullback that officials and
executives said reflected Beijing's efforts to appease
Washington and avoid U.S. sanctions on its big energy firms.
- Oil output in Russia, the world's top crude producer, hit
a new post-Soviet high of 10.28 million barrels per day (bpd) in
August on the back of production ramp-ups at TNK-BP
and Gazprom , the Energy Ministry said on Friday.
- Oil companies in Europe are betting on the survival of
President Bashar al-Assad in Syria, in contrast to their support
for Libya's opposition six months ago, even as the European
Union is expected to slap oil sanctions on Damascus.
* CRACK SPREADS
- Fuel oil's October crack was unchanged at a discount of
$6.87 a barrel to Dubai crude, while the November crack was 21
cents weaker at $6.90.
- Gas oil's October crack slipped 43 cents to a premium of
$17.86, while the November premium was down 42 cents to $18.19 a
barrel to Dubai crude.
- Naphtha's CFR Japan October crack to Brent strengthened
$1.24 to a discount of $5.30, while the November discount also
narrowed $1.31 to $4.89 a barrel.
* OUTRIGHT PRICES
- October ICE Brent LCOc1 was at $113.83 a barrel at 0830
GMT, down 17 cents from the same time on Thursday.