BEIJING, June 4 (Reuters) - The Middle East crude market
held steady on Monday as traders awaited new monthly official
selling prices (OSPs) to gauge sentiment for the front-month
August trading.
Top oil exporter Saudi Arabia could raise the OSPs, which
are expected to come out on Tuesday, for most of its crude,
setting the direction of Middle East crude trade in a market
beset by uncertainty over Iranian supplies.
OSPs for most of the Saudi grades will rise on support from
a wider Dubai backwardation, stronger fuel oil cracks and firm
spot demand for Arab Medium, according to a Reuters poll. Arab
Extra Light is expected to fall, due to weak naphtha cracks.
Abu Dhabi National Oil Co (ADNOC) is expected to release its
retroactive May price soon. Traders expect ADNOC to cut the
differential of its key Murban crude price and Dubai price by 20
to 30 cents a barrel.
Brent crude prices fell below $97 a barrel to a 16-month low
on Monday, as weak U.S. and Chinese economic data fanned renewed
fears of a global economic slowdown, which would hit oil demand.
*TENDERS
- India's IOC has issued two tenders seeking crude oil for
loading in the second half of July.
*TRADES
- Shell bought eight Dubai partials at between $95.10 and
$95.15 a barrel from Phibro, Mercuria and Glencore.
*MARKET NEWS
- BP will press ahead and sell a stake in its Russian
venture, a source close to the company said, despite a threat by
its billionaire partners to block a deal that could pave the way
for the Kremlin to cement its dominance over the country's vast
energy sector.
- A surge in gasoline prices in Asia, buoyed by a recovery
in Japanese demand to a two-year high, will end soon as
refineries in China, India and Taiwan bring on new capacity and
boost supplies of the automotive fuel.
CRUDE Price Prev Change
JULY DME Oman diff to Dubai swaps 1.29 1.35 -0.06
JULY Brent 96.77 100.36 -3.59
JULY Dubai 93.89 97.36 -3.47
AUG DME Oman 95.18 98.71 -3.53
JULY Brent/Dubai EFS 2.88 3.00 -0.12
PRODUCT CRACKS Price Prev Change
JULY fuel oil crack -3.62 -3.03 -0.59
JULY gasoil crack 15.82 15.60 +0.22
JULY naphtha crack -12.55 -12.47 -0.08
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