SINGAPORE: The Middle East crude market remained weak on Tuesday, with DME Oman hitting the lowest in just over four years, while Iraq and Kuwait kept their prices to Asia at wide discounts to a similar Saudi grade.
Oman crude futures on the Dubai Mercantile Exchange (DME) slipped below $80 a barrel on Tuesday to the lowest in just over four years.
Maersk and Unipec have started offering al-Shaheen crude for January loading although no deals were heard yet, a trader said.
Unsold condensate and Abu Dhabi grades loading in December weighed on the market.
Vitol and Mitsui likely have a deodorised field condensate (DFC) cargo each, while Tasweeq has a low-sulphur condensate, a second trader said. Total and BP held Murban and Das, he said.
OSPs
Iraq has set the official selling price (OSP) for the flagship Basra Light grade it sells to Asia at the widest discount against a similar Saudi grade in 18 months.
The wider discount was likely due to a change in the quality of the Basra Light crude, which has become heavier after new production from fields such as West Qurna was blended into its export stream, traders said.
Kuwait has set the OSP for its crude oil sales to Asian buyers for December to $2.10 a barrel below the average of Oman/Dubai quotes, up 95 cents from the previous month, a trade source said.
The OSP for Kuwaiti oil remained 50 cents lower than that of Arab Medium for the third month, according to Reuters data.
Iran has set the OSP of its light crude for Asian buyers at 13 cents above the Oman/Dubai average for December, up 95 cents from the previous month, an industry source with direct knowledge of the matter said.
PRICES
DME Oman for January settled at $79.93, down $1.85, at 0830 GMT, the lowest since October 2010, according to the exchange.
This puts DME Oman at 50 cents a barrel below Dubai swaps, compared with a discount of 71 cents in the previous session.
Cash Dubai remained on a divergent path, with discount widening to $2.33 a barrel against Dubai swaps.
MARKET NEWS
Two senior trading heads have left Brightoil Petroleum Holdings Ltd, and the company has hired a former executive from China's state-run Sinochem, marking a reshuffle at its Asia trading operations, senior trading sources said.
United Arab Emirates energy minister Suhail bin Mohammed al-Mazrou said on Tuesday that oil market fundamentals had not changed, and the Organisation of the Petroleum Exporting Countries (OPEC) had not contributed to oversupply.
Iran has called for enhanced cooperation between Tehran and Qatar in coordinating efforts to stem a drop in oil prices, Iranian official news agency IRNA and semi official FARS reported on Monday.
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