July 31, 2014 / 11:35 AM / 6 years ago

Middle East Crude-Oman rises above Brent in thin trade

SINGAPORE, July 31 (Reuters) - DME Oman crude futures rose
above ICE Brent in a rare move for the Middle East marker on
Thursday, the last trading day of the month.
    Traders attributed the price volatility in Oman to thin
trade volumes. The Middle East futures contract's premium
against Dubai also soared.
    A flurry of trades took place on the Platts window as 
traders squared positions. A total 77 Dubai partials were traded
and Unipec will deliver two Upper Zakum cargoes to Chinaoil.
    September Russian ESPO remained depressed on higher supply
and weak demand in Asia.
    Surgutneftegas sold three cargoes to Mercuria, Shell and
Lukoil at $2.20-$2.50 a barrel above Dubai quotes for loading on
Sept. 18-22, 24-28 and 26-30.
    Rosneft sold three of its cargoes to Unipec and one to JX
Nippon via a tender at $2.20-$2.70 a barrel above Dubai quotes.
The cargoes will load on Sept. 12-15, 15-18, 19-22, 23-26 and
Sept. 28-Oct. 1.
    Russia is expected to ship 2.5 million tonnes of ESPO crude
from the Pacific port of Kozmino in September, a monthly record
high, industry sources said. 
    This was equivalent to three more cargoes added to the
September programme.
    Brent-Dubai Exchange of Futures for Swaps (EFS) DUB-EFS-1M
narrowed 35 cents to $1.95 a barrel for September, near a more
than two-year low reached in the middle of this month.
    DME Oman for September settled at $106.00, down 54 cents, at
0830 GMT. This puts DME Oman at $2.75 a barrel above Dubai swaps
against a premium of $0.66 in the previous session.
    The official selling price (OSP) for Oman crude in September
will fall by $1.84 to $106.24 a barrel, Reuters calculations
based on data from the Dubai Mercantile Exchange (DME) showed on
    Iran's biggest clients took in a quarter more oil in the
first six months of 2014 than in the same period of last year,
with China and India holding to the higher volumes they started
after the agreement that relaxed Western sanctions on Tehran.
    Iraqi Kurdistan's attempts to export oil independently of
Baghdad hit another obstacle on Wednesday, as a Turkish energy
official and industry sources said the autonomous region's
pipeline to the Mediterranean has been shut for the past week.
    Part of a Kurdish oil cargo has been offloaded from a
Greek-managed tanker into another tanker in the South China Sea,
but mystery surrounds the identity of the buyer and where the
two tankers are headed. 
    China may grant new crude import licences to private
companies and release new quotas on oil imports within the next
two weeks, as it moves to open the world's top energy consumer
to more competition, Shanghai Securities News said.
    Kazakhstan's giant Kashagan oilfield may resume production
in the first half of 2016 under an "optimistic scenario", Kazakh
Oil and Gas Minister Uzakbai Karabalin said, putting off his
earlier estimate of the restart date. 
    For crude prices, oil product cracks and refining margins,
please click on the RICs below.
 DME Oman                          
 Brent/Dubai EFS             DUB-EFS-1M
 PRODUCT CRACKS              
 Fuel oil crack                            
 Gasoil crack                           
 Naphtha crack                              
 Complex refining margins                 
 (Reporting by Florence Tan and Jacob Gronholt-Pedersen; Editing
by Dale Hudson)
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