BLBG:Middle East Oil Rises on Expectations Sellers to Cut Prices
Middle East crude oils for sale to Asia rose against their benchmarks on expectations by refiners that producers will reduce official prices for lighter grades.
Abu Dhabi National Oil Co.’s Murban for August loading climbed 25 cents to a discount of 33 cents a barrel to its official selling price, according to data compiled by Bloomberg. Qatar Land increased 27 cents to 41 cents below its official level, Bloomberg data showed.
Saudi Arabia may cut the price of its Extra Light and Light grades of crude in order to increase sales for August, said four Asian refiners surveyed by Bloomberg. The country pledged to offer more supplies following a June 8 Organization of Petroleum Exporting Countries meeting where no agreement was reached to raise output quotas. The International Energy Agency followed by agreeing on June 23 to release crude from its emergency stockpiles.
“At the lighter end of the spectrum we may see the Kingdom reducing or at least rolling over official prices for Arab Light and Extra Light, in line with IEA release and ailing regional refinery margins,” said Vienna-based consultant JBC Energy GmbH.
Oman futures for September delivery fell 41 cents to $106.39 a barrel on the Dubai Mercantile Exchange at 5:06 p.m. Singapore time, with 1,041 contracts traded. The settlement price was $106.27 at 12:30 p.m. in Dubai.
Oman crude for immediate loading rose 75 cents, or 0.7 percent, to $106.97 a barrel, Bloomberg data showed. Dubai oil for delivery in September climbed 0.7 percent to $106.71. Murban gained 0.9 percent to $111.35.
The August Brent-Dubai exchange for swaps, which measures the European marker against the Persian Gulf grade, widened 19 cents to $5.42 a barrel, according to data from PVM Oil Associates Ltd., an oil and refined-products broker in London. The exchange for swaps for September rose 12 cents to $4.96.
To contact the reporter on this story: Christian Schmollinger in Singapore at christian.s@bloomberg.net
To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net.
