SINGAPORE: The physical market for Middle East crude oils was thin on Friday as traders await the release of Basrah loading programmes.
But the price of benchmark Dubai fell for the third consecutive day amid concerns that the oversupply in the market was persisting and as news that senior Saudi energy officials told US oil producers this week that OPEC would not extend its production cuts to offset any rise in US shale oil output.
Indian refiner Reliance sold three May Dubai partials on the Platts window on Friday, a trader said, putting cash Dubai at 13 cents above swaps, steady from the previous session.
India's ONGC awarded its recent tender to sell Sakhalin Sokol crude at a premium of around $1.55 per barrel to the average of Oman and Dubai quotes in May to BP, traders said. The deal level, which is about 50 cents weaker than previous deals, is equivalent to a premium of about $1.45 per barrel to frontline Dubai assessments.
Premiums for Sokol crude from the Russian far eastern Sakhalin field have weakened as the grade is compared with Middle East grades like Murban.
The Asian market remains flooded with Murban crude amid more supplies of the Abu Dhabi grade following a fire at the Ruwais refinery in January. March-loading Murban supplies were still heard on offer early this week even as offers for May cargoes are set to emerge.
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