RTRS:Middle East Crude-Weaker OSPs weigh on sentiment
SINGAPORE, May 10 (Reuters) - Sentiment in the Middle East
crude market weakened on Thursday following cuts in official
selling prices amid ample availability as Saudi Arabia and other
producers ramp up output to take care of any disruption in
supplies.
Participants were assessing the direction of trade for July,
expected to start next week, after most Middle Eastern producers
announced their OSPs, starting with Saudi Arabia which announced
deeper-than-expected cuts.
"Overall, the market will be under pressure because of the
cut announced by Saudi Arabia," a trader with a western oil
company said. "It is too early to tell now because the market is
still digesting the OSPs."
Saudi Arabia will supply full contracted crude volumes to
Asian buyers in June, steady from May, as ample supplies of
competing grades keep pressure off refiners to replace lost
Iranian barrels.
*OSPs
Iran has cut its official selling prices (OSPs) for
June-loading crude to Asia from May, in line with market
expectations, but raised those to Europe, trading sources said.
As expected, Tehran cut its Iran Light prices to Asia by
$1.30 from May to a $1.36 a barrel premium to Oman/Dubai.
*TRADES
- Arcadia bought 25,000 barrels Dubai from SK at $109.40.
- Glencore bought 25,000 barrels Dubai from Phibro at
$109.39.
*MARKET NEWS
- OPEC is pumping enough oil to keep world markets more than
satisfied, and oil prices have been high largely due to
geopolitical risk, the oil producing group said on Thursday.
- Indian Oil Corp, the country's biggest refiner, has made
its first purchase of Mexican Maya oil, a trade source said, as
the state-run firm looks to diversify its crude slate due to
improved capacity and reduced imports from sanctions-hit Iran.
- China's April imports of crude oil rose 3.3 percent from
the same month a year ago to 5.42 million barrels per day (bpd),
but high oil prices reduced the level of purchasing from the
previous month, customs data showed.
CRUDE Price Prev Change
JULY Oman diff to Dubai 0.48 0.65 -0.17
JUNE Brent 112.91 112.40 0.51
JULY Dubai 108.67 108.30 0.37
JULY DME Oman 109.15 108.95 0.20
JUNE Brent/Dubai EFS 3.84 3.73 0.11
PRODUCT CRACKS Price Prev Change
JUNE fuel oil crack -4.70 -3.86 -0.84
JUNE gasoil crack 16.67 16.79 -0.12
JUNE naphtha crack -11.13 -9.40 -1.73
COMPLEX REFINERY MARGINS
Today 6.93
Last 5 days 7.19
Last 365 days 7.63
