SINGAPORE: The Middle East crude market weakened further on Wednesday with Oman flipping into a discount against Dubai swaps for the first time in close to two months.
DME Oman was at 16 cents a barrel below Dubai swaps, down from an 11-cent premium in the previous session, Reuters calculations showed.
Cash Dubai also sank deeper into discount against swaps after Reliance and SK Energy sold four August partials to Shell at $47-$47.05 a barrel, traders said. That put cash Dubai at 40 cents below swaps, down 20 cents from the previous session.
Murban's discount also widened to 20 cents a barrel to its official selling price (OSP) after Thailand bought an August-loading cargo at that level, traders said.
"Japanese refineries took other light grades and less Murban as its OSP was too high," a trader said.
The drop in Murban's demand also dragged down August premiums for rival Russian grades.
Sokol was offered at $4 a barrel above Dubai quotes, traders said, down from a previous deal at a premium of more than $5, despite tighter supplies due to field maintenance.
ESPO crude loading in the first 10 days of August was mostly sold at premiums under $2 a barrel, traders said. Demand may pick up for cargoes loading later in the month.
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