SINGAPORE, June 11 (Reuters) - Middle East crude held steady on Monday as traders look ahead to an OPEC meeting later this week for supply cues before commencing August trade. Higher output from Saudi Arabia, Iraq and Libya and lower demand from a global economic slowdown have kept the oil market well-supplied, softening the impact of a potential sharp fall in Iranian crude exports later this month when Western sanctions start, top oil executives said last week. The market is watching for signs on whether Saudi Arabia could turn down the taps after Brent slipped more than $20 a barrel from March, although they do not expect a change in OPEC's production quota at the quarterly meeting. The top oil exporter has been pumping above 10 million bpd, a 30-year high, but an industry source said on Saturday that the output is down to 9.8 million bpd in May. Asian refiners say they will receive full contractual volumes from Saudi Arabia in July although it is not clear if they will request for additional barrels. Hikes in Saudi and Iraqi OSPs could limit the supply of cheaper crude and lend some support to prices, Morgan Stanley analysts said in a note. "However, we are careful to distinguish a rise in OSPs with a production cut, as this does not imply that markets will be any less well-supplied, only that the downside to prices may be more limited," they said. Spot differential for Murban in August could come under pressure as its OSP is still more than $1 a barrel higher than that for similar grade Arab Extra Light, a trader said. Qatar Marine could trade at parity to its OSP given the smaller-than-expected reduction for its OSP, a second trader said. *TRADES - Phibro sold four Dubai partials to Shell at $98.60 a barrel. *OSP - Kuwait raised the official selling price (OSP) for its crude sales to Asian buyers for July by 45 cents a barrel from the previous month to 15 cents a barrel below the average of Oman/Dubai quotes, a trade source said. *MARKET NEWS - Iraq oil minister and OPEC president Abdul Kareem Luaibi said on Monday a large surplus had led to a sharp decline in oil prices over a short span of time and that he believed $100 to $120 per barrel was a more reasonable level. - Taiwan did not import Iranian crude in April, government data showed on Monday, halting purchases from the country earlier than expected ahead of Western sanctions on oil exports from the Islamic Republic. - China's implied oil demand inched up 0.4 percent in May year-on-year, and rose marginally from April, when the figure fell for the first time in more than three years. CRUDE Price Prev Change AUG DME Oman diff to Dubai swaps 1.58 1.72 -0.14 JULY Brent 100.43 97.33 +3.10 AUG Dubai 97.10 93.93 3.17 AUG DME Oman 98.68 95.65 +3.03 JULY Brent/Dubai EFS 2.95 3.00 -0.05 PRODUCT CRACKS Price Prev Change JULY fuel oil crack -3.19 -3.23 0.04 JULY gasoil crack 15.35 15.85 -0.50 JULY naphtha crack -13.65 -14.11 0.46 COMPLEX REFINERY MARGINS Today 3.14 Last 5 days 5.68 Last 365 days 7.47 (Reporting by Florence Tan and Risa Maeda in Tokyo; Editing by Alison Birrane)

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