RTRS:Middle East crude slips; Europe export hopes ebb
SINGAPORE, Sept 19 (Reuters) - Middle East crude values
softened on Monday after reaching record highs for some grades
last week, as expectations of exports to Europe dwindled because
of unattractive margins there.
Traders said there was a growing perception that Asian
markets would be more amply supplied, while some buyers paused
after securing baseload cargoes last week, waiting for potential
resales as prices decline.
"The market did expect that it would be a premium market
because the OSPs were increased, but I think it was overdone," a
trader said.
Refiners across the continent had been stocking up for peak
winter heating demand, while the supply of arbitrage cargoes
from the Atlantic Basin remains limited because of curtailed
Libyan and North Sea production. Brent's premium over Dubai
crude has remained above $5 a barrel despite expectations of
resuming Libyan exports.
"There was some sentiment that the West was strong and a
possibility that Oman could be arbbed out, but Europe margins
are not that good, so that should give a bit of pressure,"
another trader said.
* VALUES DECLINE
- Oman crude cargoes for loading in November were valued at
a premium of about $1.90 a barrel to Dubai quotes, down about 20
cents from a six-month high of $2.10 at the end of last week.
- Murban slid towards a premium of 45 cents a barrel to the
ADNOC OSP, while Iraqi Basrah Light was valued at a premium of
about 20 cents to the OSP, down from about 30 cents last week.
- Banoco Arab Medium was valued at a premium of about 50
cents to she official selling price (OSP) of Arab Medium, down
from premiums as high as 80 cents last week, a trader said.
* EAST-WEST
- The Brent/Dubai Exchange of Futures for Swaps (EFS) for
November fell 15 cents to $5 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 slipped 3 cents to a
premium of $1.83 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.
* MARKET NEWS
- Gulf OPEC producers that raised oil output to compensate
for the shutdown of Libyan oilfields will certainly reduce
production as Libya's output recovers, OPEC Secretary General
Abdullah al-Badri said on Monday.
- Leading oil exporter Saudi Arabia produced 9.606 million
barrels a day (bpd) of crude in July, 207,000 bpd less than in
June, according to the latest official data published by the
Joint Data Initiative (JODI).
- The International Energy Agency (IEA) has assured oil
exporters' group OPEC that it will not repeat June's oil stocks
release by consuming countries of the OECD, OPEC's Secretary
General said on Monday.
- Angola is scheduled to export 1.81 million barrels per day
(bpd) of crude oil in November, up from October, as a new
oilfield helps to boost supplies, a provisional loading schedule
showed on Monday.
* CRACK SPREADS
- Fuel oil's October crack weakened a slight 5 cents to a
discount of $5.78 a barrel to Dubai crude, while the November
discount was 10 cents weaker at $5.84.
- Gas oil's October crack lost 32 cents to a premium of
$17.20, while the November premium weakened 30 cents to $17.40 a
barrel to Dubai crude.
- Naphtha cracks climbed to a three-week high on Monday,
with the October discount narrowing $2.27 to $5.01 a barrel and
November to $4.41, up $2.03.
* OUTRIGHT PRICES
- October ICE Brent LCOc1 was at $111.69 a barrel at 0830
GMT, down $1.51 from Friday.
