SINGAPORE: Cash Dubai weakened in the Middle East crude market on Tuesday despite Chinaoil's purchases on the window.
The trading arm of PetroChina took delivery of another four cargoes on Tuesday, bringing its total haul this month to 10 cargoes, traders said.
Unipec will deliver three Oman while Shell has declared the delivery of one Upper Zakum, they said.
Cash Dubai's discount to Dubai swaps stayed at around $1 a barrel, weaker versus a discount of about 70 cents on Monday, but steady when compared with last week's levels.
Gulf producers have raised their OSPs following a strong May market. A trader with a North Asian firm expects the strength to continue when June-loading cargoes start trading as refining margins stayed firm while Gulf prices remained competitive.
But traders remain wary on the supply front as more Iranian oil could emerge after Iran and world powers reached a framework nuclear deal.
An Iranian delegation is in Beijing this week to push for more oil sales and discuss Chinese oil and gas investments in Iran, Iranian oil officials told Reuters.
But Chinese demand for Iranian oil has hit a bump after an explosion hit Dragon Aromatics on Monday, Xinhua reported.
Ninety percent of the feedstock at the independent petrochemical producer is Iranian South Pars condensate, a trader said.
Excess supply may have to be diverted to other Chinese consumers as sanctions on Iran limit buyers for Iranian oil, he said.
TENDERS
Indian Oil Corp (IOC) issued a tender seeking 3 million barrels of either Basra Light or Oman for June loading. The tender will close on April 8 with offers valid until a day later.
Rosneft offered three Sokol cargoes for loading on May 31-June 9, June 10-19 and 21-30 in a tender to close on April 8 with bids valid until April 14.
DME OMAN
DME Oman for June settled at $55.67 a barrel, up 82 cents, at 0830 GMT. This puts DME Oman at 68 cents below Dubai swaps against a discount of 58 cents in the previous session.
MARKET NEWS
Libyan state firm Arabian Gulf Oil Company (AGOCO) is producing 317,000 barrels per day (bpd), the highest level in the last two years, the company's spokesman said.
The United States made clear on Monday that sanctions on Iran would have to be phased out gradually under a nuclear pact and President Barack Obama poured cold water on an Israeli demand that a deal be predicated on Tehran recognizing Israel.
Indonesia could increase its fuel imports this year as state energy firm Pertamina plans to cut output at one of its six refineries to reduce costs, The Jakarta Post and other local media said on Tuesday.
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