SINGAPORE: The Middle East crude market weakened on Monday with DME Oman slipping back to a discount against Dubai, while traders chewed on a series of monthly prices released over the weekend.
Qatar deviated from its usual method of setting its Marine crude OSP by cutting the grade's OSP differential to Dubai by 34 cents, in line with September spot trades, instead of following ADNOC's Upper Zakum.
"It's the first time I've seen it reflecting spot market levels," a trader said.
Differentials for October-loading Qatar Marine would have to depend on demand, but it would probably not be in as deep a discount as last month, the trader said.
Iraq reduced the OSP for Basra Light sold to Asia in September by 45 cents a barrel versus a 40-cent cut for Saudi's Arab Medium.
Still, this was unlikely to entice Asian refiners to take the risk of purchasing Iraqi barrels amid turmoil in the country, traders said.
Al-Shaheen crude spot volume will return to normal levels in October with Tasweeq offering four cargoes in its monthly tender. Last month, the Qatari state oil marketer sold eight spot cargoes for September as term buyers had cut their requirement due to refinery maintenance.
Tasweeq's tender will close on Aug. 13 with bids valid two days later.
*OSPs
Iran has set the official selling price (OSP) of its Light crude oil loading in September to Asian buyers at $1.90 a barrel above the average of Oman/Dubai quotes, traders said on Monday, down 40 cents from the month before.
Yemen has set the official selling price of its Masila crude for loading in October at a premium of $0.42 a barrel to dated Brent, up $0.1 from the previous month, its government said on Sunday.
UNIPEC UK bought the entire 1.4 million barrels of Masila crude offered by Yemen, the government said in a statement.
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