Middle East Crude-Ample supplies, narrower Brent-Dubai weigh

SINGAPORE: Middle East crude benchmarks were little changed on Tuesday but ample supplies and a narrower Brent-Dubai spread continued to weigh on differentials for spot cargoes loading in September.

Brent's premium to Dubai swaps was at $2.19 per barrel, the narrowest in more than nine months, which will likely squeeze differentials for Dubai-linked grades.

UAE: BP offered 500,000 barrels of Murban crude at 40 cents a barrel below its OSP on RIM. Subsequently, Japanese refiner Fuji Oil bought 750,000 barrels of Murban crude for loading in September at 35-40 cents a barrel below its official selling price (OSP), wider discounts than the previous month, trade sources said.

The refiner bought less Murban crude this month because of high inventories and as it continues to lift Iranian crude in September, one of the sources said.

Last month, Fuji Oil bought 1 million barrels of Murban at 21-22 cents a barrel below its OSP for August loading.

IRAQ: Iraqi police used batons and rubber hoses to disperse about 250 protesters at the main entrance to the giant Zubair oilfield near Basra on Tuesday as unrest across southern cities over poor basic services gathers pace.

Iraq exported an average of 3.566 million barrels per day from its southern oilfields so far in July, said senior oil officials, levels confirming that the troubles have not disrupted crude shipments from the region.

WINDOW: Cash Dubai's premium to swaps edged up 3 cents to 51 cents. Unipec will deliver an Upper Zakum cargo to Gunvor

Separately, BP placed a bid for 500,000 barrels of Upper Zakum at OSP minus 25 cents a barrel, a move that is likely to shore up the grade's differential from earlier trades at discounts of 25-30 cents a barrel.