SINGAPORE: The Middle East crude market softened slightly on Tuesday after Iraq cut the October official selling price (OSP) differential for Basra Light, following in the footsteps of Saudi Arabia as producers compete for market shares.
Iraq's State Oil Marketing Organization (SOMO) lowered Basra Light's OSP to $2.50 a barrel below Oman-Dubai quotes, down $1.50, same as the price cut for Saudi Arab Medium's OSP set last week.
Basra Light remained under pressure in the spot market as cargoes loading in September and October were still available in the market, offered at discounts to OSPs, traders said.
Demand for the Iraqi grade has been weak in Asia as buyers have avoided purchases on concerns of supply disruption since the Islamic insurgency in June.
Traders were still waiting for another two sets of OSPs from Kuwait and Iran before trade for cargoes loading in November commences.
Saudi Arabia, the world's top crude exporter, will supply full contracted volumes of crude oil to at least two Asian term buyers in October, unchanged from September, industry sources familiar with the matter said.
DME OMAN
DME Oman for November settled at $98.35, down 5 cents, at 0830 GMT. This puts DME Oman at 80 cents a barrel below Dubai swaps against a 71 cent discount in the previous session.
MARKET NEWS
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