RTRS:Middle East Crude-OSP cuts buoy sentiment, Qatar, Kuwait awaited
SINGAPORE, Aug 7 (Reuters) - Sentiment in the Middle East
crude market remained upbeat for a second day after cuts in
official selling prices (OSP) for Asia by top producer Saudi
Arabia and its neighbours proved to be deeper than expected.
Traders said the move might help spur demand for October
loading crude, after the spot market slumped to deep discounts
last month, although buyers were still awaiting OSPs from Qatar
and Kuwait before taking a view for the month.
Saudi Arabia cut its Arab Light crude price for Asian buyers
in September by 80 cents a barrel, more than the 60 cents
traders had expected, while the Arab Medium and Arab Heavy
grades were cut by $1.20 a barrel, more than the drop of $1
predicted in a Reuters poll last week.
Abu Dhabi National Oil Co (ADNOC) also lowered its OSP
premium to Dubai to $2.60 from $2.91 last month for Murban crude
and to 70 cents from $1.21 for Upper Zakum.
Yemen cut the official selling price of its Masila crude for
loading in October to a premium of $0.13 a barrel to dated
Brent, down 39 cents from the previous month, its government
said late on Monday.
*TRADES
- There were no crude trades in the over-the-counter window.
There were three offers for October Dubai partials from SK
Energy, Philbro and Hetco, ranging from $106.10 to $106.60 a
barrel. There were three bids from Hetco, Total and Philbro,
ranging from $105.60 to $105.90 a barrel.
*MARKET NEWS
- Output from the North Sea's second-largest crude oil
stream is set to fall sharply in September, adding to signs of
reduced supply from the home of the Brent benchmark used to
price around two-thirds of the world's oil.
- India's top shipowners have rejected a government offer to
ship Iranian oil, saying insurance provided by the state as
sanctions hit alternative cover is inadequate.
- Iraqi oil exports through Turkey halted completely on
Tuesday after an attack on a pipeline on Sunday, adding to
global supply fears.
- Leading pricing agency Platts will soon start a new price
assessment for Iraqi Basra Light crude as the trading volume of
the grade grows along with higher output, a senior company
official said on Tuesday.
CRUDE Price Prev Change
OCT DME Oman diff to Dubai swaps +1.15 +1.28 -0.13
SEP Brent 110.38 108.65 +1.73
OCT Dubai 105.10 103.58 +1.52
OCT DME Oman 106.25 104.86 +1.39
SEP Brent/Dubai EFS 4.86 4.65 +0.21
