SINGAPORE: DME Oman's premium to Dubai crude fell for the fourth straight session on Tuesday to hit the lowest in five months, depressed by weak demand in Asia.
Faced with lacklustre refining margins, Asian refiners are keeping utilisation rates low, reducing demand for August loading barrels.
The valuation for competing Murban has likely fallen to parity to its OSP as cargoes were still available for August loading, a trader said, despite purchases by Thai refiners last week at premiums between 20 and 30 cents a barrel.
Traders are eyeing the result of a tender to buy sour crude issued by Taiwanese refiner CPC which closed on Tuesday.
Sri Lanka's Ceypetco also issued a tender seeking 90,000 tonnes, or 675,000 barrels, of Murban crude for Sept. 24-Oct. 3 delivery. The tender will close on Tuesday with offers valid for three days.
Brent-Dubai Exchange of Futures for Swaps (EFS), or Brent's premium to Dubai swaps, fell 40 cents to $4.25 a barrel for August, the lowest in nearly three weeks, adding downward pressure to differentials for Middle Eastern grades.
Trade in August-loading Basra Light remained muted even as Iraq's oil exports from its southern terminals are near record rates in June despite attacks by Sunni Islamist insurgents and their capture of swathes of territory in northwest and central Iraq, according to loading data and industry sources.
Comments
Comments are closed for this article.