SINGAPORE, Aug 10 (Reuters) - The Middle East crude market
was steady on Friday as dealers geared up to begin trading for
October, after all major producers cut official selling prices
(OSPs) for Asian buyers.
The outlook for demand remained mixed. Some traders said it
would continue to be weak, after recent data showed that crude
imports by China, the region's biggest consumer, in July were
the lowest since November 2011.
Others said the spate of OSP cuts by major producers may
spur some buying. Kuwait and Iran announced cuts in their OSPs,
following similar moves by Saudi Arabia and Abu Dhabi National
Oil Company (ADNOC) earlier this week.
*OSP:
- Kuwait cut its OSP for crude to Asian buyers for September
by $1.20 a barrel from the previous month, trade sources said on
Friday. The OSP for September will be 50 cents a barrel below
the average of Oman/Dubai quotes, compared with 70 cents a
barrel above the average for August.
- Iran has lowered its official selling prices (OSPs) for
September-loading Iranian Heavy crude to Asia by $1.20 a barrel
from August to Oman/Dubai minus 39 cents, industry sources with
direct knowledge of the matter said on Thursday.
It cut its Iran Light prices to Asia by 80 cents a barrel to
a $1.44 a barrel premium to the Oman/Dubai average, the sources
said.
*TRADES:
- There were no trades in the over-the-counter market on
Friday. There were for offers for October Dubai partials at
prices ranging between $108.30 per barrel and $108.60 per barrel
and three bids at prices between $107.50-$108.10 per barrel.
*MARKET NEWS
- China's implied oil demand rose 0.9 percent in July from a
year earlier, Reuters calculations showed, although was at the
second-lowest level this year as refiners capped production.
- Global oil demand growth will fall next year below already
very weak levels of 2012 due to a slow-down in economic
activity, the West's energy watchdog said on Friday.
- The United States still believes that Iran is not on the
verge of having a nuclear weapon and that Tehran has not made a
decision to pursue one, U.S. officials said on Thursday.
- China's crude oil imports in July rose 12 percent from a
year earlier but were the lowest since last November, as the
country capped refinery production at the second-lowest level
this year amid weak demand for fuel.
- The CME Group will raise margins to trade NYMEX crude oil
futures after close of business on Monday, Aug. 13, it said in a
statement on Thursday.
CRUDE Price Prev Change
OCT DME Oman diff to Dubai swaps
SEP Brent 112.58 111.48 +1.10
OCT Dubai 107.34 105.99 +1.35
OCT DME Oman 108.44 107.73 +0.71
SEP Brent/Dubai EFS 4.77 5.05 -0.28
