SINGAPORE: Middle East crude benchmarks edged down on Monday, with most of the June-loading cargoes traded while some refiners scaled back demand on strong premiums this month.
Indian Oil Corp cancelled a sour crude tender last week after receiving higher than expected offers for Basra Light, traders said. It has not bought the Iraqi grade this month and has only bought 1 million barrels each of Banoco Arab Medium and Murban in earlier tenders, they said.
May-loading Basra Light's premium hit a record high above $1 a barrel this month in a purchase by a Japanese refiner, but the crude's value has since slipped back to a premium of less than 50 cents a barrel, with bids from other Asian buyers at about 30 cents.
China's CEFC has sold an ESPO cargo loading June 15-25 at $3.30 a barrel above Dubai quotes, traders said, after Gazprom Neft sold an early June cargo to BP at a premium of $3.25. June-loading ESPO crude has traded at $3.10-$3.50 a barrel and is likely to stay at that level, one of the traders said.
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