RTRS:Middle East Crude-Strong Nov to kick off with Saudi OSPs
SINGAPORE, Sept 5 (Reuters) - Expectations of higher
official selling prices for Saudi Arabia, the United Arab
Emirates and Qatar strengthened the Middle East crude market on
Monday.
Limited imports of Atlantic Basin crude into Asia and rising
exports from the Mideast Gulf to the Mediterranean of grades
including Oman and Iraqi Basrah Light reasserted the bullish
tone ahead of November trade.
Traders valued benchmark Oman crude cargoes for loading in
November at a three-month high of about $1 a barrel above Dubai
quotes, unchanged from Friday, and up from a premium of about 75
cents for the last deals heard for October cargoes.
Top oil exporter Saudi Arabia may increase official selling
prices (OSPs) of October crude for Asian clients, as refiners
across the continent process more, aiming to benefit from
attractive margins for products from fuel oil to jet fuel.
All seven traders participating in a Reuters poll expect the
price of Arab Light will rise, with gains expected in a range
between 15 and 80 cents to a premium of between 90 cents and
$1.55 a barrel to the average of Oman and Dubai quotes.
The Saudi OSPs are likely to be announced later on Monday.
Once the OSPs are out, Saudi Aramco is likely to notify
customers in Asia later this week that their October crude
supply would remain unchanged at full volumes.
India's MRPL has bought 600,000 barrels extra Saudi oil for
October as it did not purchase any spot cargoes in tenders
seeking sweet crude for October and November.
Industry functions in Singapore during the Asia-Pacific
Petroleum Conference this week were expected to delay trade
until the second half of the week.
* EAST-WEST
- The Brent/Dubai Exchange of Futures for Swaps (EFS) for
October rose 9 cents to $5.15 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
- November Oman traded on the DME was at a premium of $1.06
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
- India has paid off all oil debts accumulated this year due
to a sanctions-related problem, Central Bank Governor Mahmoud
Bahmani told the official IRNA news agency on Sunday.
- Kuwait pumped more than 2.8 million barrels per day (bpd)
of oil throughout August, state news agency KUNA on Sunday
reported oil minister Mohammad al-Busairi as saying, the highest
level since the global economic downturn in late 2008.
- The European Union imposed a ban on purchases of Syrian
oil on Saturday and warned of further steps unless President
Bashar al-Assad's government ends its five-month crackdown on
dissent.
- Russia has invited members of Libya's interim government
to Moscow to discuss the future of Russian energy contracts in
the country stricken by six-months of civil war, Foreign
Minister Sergei Lavrov said on Saturday.
* CRACK SPREADS
- Gas oil's October crack slipped 32 cents to a premium of
$17.70, while the November premium was down 35 cents to $17.97 a
barrel to Dubai crude.
- Fuel oil's October crack narrowed 52 cents to a discount
of $6.59 a barrel to Dubai crude, while the November discount
was also 56 cents stronger at $6.78.
- Naphtha's October crack to Brent strengthened 32 cents to
a discount of $6.11, while the November discount also narrowed
43 cents to $5.60 a barrel.
* OUTRIGHT PRICES
- October ICE Brent LCOc1 was at $111.57 a barrel at 0830
GMT, down $2.26 from the same time on Friday.
(Reporting by Alejandro Barbajosa and Nidhi Verma; Editing by
Manash Goswami)