SINGAPORE, Sept 9 (Reuters) - Oman crude values jumped to
their highest since the Libyan civil war broke out six months
ago, boosting sentiment across the Middle East crude market
ahead of the Northern Hemisphere's peak heating season.
The notional premium of Oman crude climbed to about $1.50 a
barrel to Dubai quotes on Friday, up from $1.30 a day earlier
and discounts of 30 cents a month ago, tracking rising values in
the Dubai Mercantile Exchange.
Refiners are still holding back from showing buying interest
for November cargoes as industry gatherings in Singapore wind
down following the Asia-Pacific Petroleum Conference this week.
But trading was expected to accelerate next week as traders
return to their desks and refiners begin meeting November
requirements, stocking up for winter.
The premium of Brent over Dubai crude reached its widest
level in more than a month, also supporting spot premiums of
Middle East grades. A wider Brent-Dubai renders imports of
Atlantic Basin supplies into Asia less economical and Mideast
Gulf exports to Europe more profitable.
* EAST-WEST
- The Brent/Dubai Exchange of Futures for Swaps (EFS) for
October rose 29 cents to $5.67 a barrel at 0830 GMT, the highest
since early August, 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 slipped 9 cents to a
premium of $1.63 a barrel 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.
* OSPs
- Kuwait has raised the official selling price (OSP) for its
crude oil sales to Asian buyers for October by $1 to a discount
of 55 cents a barrel to the average of Oman/Dubai quotes.
- OSPs for October-loading Iranian crude will probably
increase after Saudi Arabia raised prices of Arab Light and Arab
Medium by more than expected this week.
- Iranian Light is expected to climb to a premium of $1.91 a
barrel to the Oman/Dubai average, up 90 cents from September, if
the National Iranian Oil Co (NIOC) follows the Saudis.
* MARKET NEWS
- China's refinery throughput grew at a modest 4.5 percent
on the year in August to about 8.66 million barrels per day, the
second-lowest daily processing rate this year due to regular
plant shutdowns and refinery accidents.
- This is the third straight month that China has operated
its refineries at levels below the norm since late 2010, capping
demand growth in the world's second-largest oil user at rates
slower than the double-digit pace seen earlier in the year.
- Iraq expects to resume talks with oil majors this month on
a multi billion-dollar oilfield water injection plan to maintain
reservoir pressure after disagreement over costs suspended the
project for months, a senior oil official said.
- Libya's interim government is drafting a proposal that
would shrink the responsibilities of the National Oil Corp (NOC)
to make it a purely commercial organisation, a member of the
interim government has told Reuters.
* CRACK SPREADS
- Fuel oil's October crack strengthened 26 cents to a
discount of $5.84 a barrel to Dubai crude, while the November
discount was 24 cents narrower at $6.13.
- Gas oil's October crack slipped 39 cents to a premium of
$17.06, while the November premium was down 44 cents to $17.39 a
barrel to Dubai crude.
- Naphtha's October crack discount widened 52 cents to $6.79
a barrel, while November was 30 cents weaker at $5.97 a barrel.
* OUTRIGHT PRICES
- October ICE Brent LCOc1 was at $114.49 a barrel at 0830
GMT, down 38 cents from Thursday.
(Reporting by Alejandro Barbajosa; editing by Keiron Henderson)
