SINGAPORE: Trade in September-loading Middle East crude cargoes kicked off with Upper Zakum trading at slightly higher premiums than the previous month, traders said on Monday.
Exxon Mobil and ENOC sold one Upper Zakum cargo each at 30-40 cents a barrel above the grade's official selling price (OSP) to Chinaoil and PTT, they said. The deals could not be independently verified.
Robust demand on the window supported Upper Zakum and will likely underpin values for medium and heavy sour grades, traders said.
A cut in Basra exports may also provide some support.
Iraq allocated 2.52 million barrels per day (bpd) of Basra crude for export in August, down from 2.95 million bpd in the previous month, traders said, citing a preliminary loading programme from the State Oil Marketing Organization (SOMO).
August-loading Basra Light had traded at 20-30 cents a barrel above its OSP before the loading programme was released, traders said. The drop in Basra Heavy crude supply may narrow its August differentials to between parity and small discounts, a trader said, although no cargo has traded yet.
Two tankers have arrived at the eastern Libyan port of Hariga to lift 1.15 million barrels of crude, an oil official said on Sunday. Another tanker was expected to lift 600,000 barrels of oil from the eastern Brega port, another official said.
Any nuclear deal between Iran and six world powers loosening sanctions against Tehran could flood an oversupplied oil market with more fuel.
"They can add about 200,000 bpd, which is not a significant volume," said Nick Sharma, managing director at research & consulting firm IHS, estimating that it would take at least 18 months for Iran to add another million bpd to exports.
Japan's government-affiliated Institute of Energy Economics said that if there was a deal Iran's oil output might rise by 700,000-800,000 barrels bpd by the second half of 2016.
Russia suspended oil exports from the Pacific port of Kozmino on Sunday due to an approaching typhoon, Interfax news agency cited a spokesman for oil pipeline monopoly Transneft as saying on Monday.
It is expected that the wind will weaken by Monday evening and loadings could resume. A port official declined to comment.
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