SINGAPORE: Several Middle East crude grades for August loading traded at lower differentials than the previous month as producers raised official selling prices (OSPs) and as weak refining margins capped demand in Asia, traders said on Monday.
Japanese refiners commenced purchases late last week, paying premiums between 15 and 19 cents a barrel to OSP for Murban, down from 30-40 cents from the previous month, they said. A Japanese refiner has bought a Das Blend cargo at about 15 cents a barrel above OSP.
For medium grades, Qatar Marine slipped into a single-digit discount, down from premiums of 20-30 cents last month, after Qatar raised the grade's OSP premium to Dubai.
BAPCO has sold two Banoco Arab Medium cargoes to Japan, one to TonenGeneral at about 7 cents a barrel above OSP while the second one went to an unknown buyer at a lower premium, traders said. The deals could not be independently verified.
Heavy sour al-Shaheen also came under pressure with Maersk and Unipec selling two cargoes each at 70 cents to $1 a barrel above Dubai quotes. Qatar's Tasweeq was expected to award five al-Shaheen cargoes for August loading in its monthly tender at an average premium of 78 cents a barrel, down from $1.16 last month, traders said.
Last week, Shell sold two Upper Zakum cargoes on the window to Vitol and Trafigura at 10 cents a barrel above OSP, they said, down from 15 cents in the previous month.
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