Middle East crude benchmarks Oman, Dubai and Murban gained on Tuesday, tracking rising global oil futures amid expectations of growing demand during the summer driving season and possible supply disruptions.

Spot premiums for the three benchmark grades were in the range of $1.59-$1.92, compared with $1.3-$1.54 on Monday.

SAUDI OSP PREVIEW

Top oil exporter Saudi Arabia may cut prices for crude grades it sells to Asia for a second month in August, tracking weakness in Middle East benchmark Dubai, trade sources said.

The official selling price (OSP) for flagship Arab Light crude sold to Asia in August may fall by 60 cents to 80 cents a barrel from July, possibly to the lowest since April, four sources at Asian refineries said in a Reuters survey.

The respondents expect slightly deeper price cuts for heavier grades — Arab Medium and Arab Heavy — than Arab Light on improving supply from Mexico and Canada.

Iran is selling crude oil to 17 countries, Oil Minister Javad Owji was quoted as saying by the semi-official Mehr News Agency, indicating some states may not be honouring U.S. sanctions.

Venezuela’s June oil exports were largely flat at around 760,000 barrels per day (bpd) as U.S. licenses supported half of month’s shipments to destinations in the U.S. and Europe.

U.S. crude oil and product stockpiles were expected to have fallen last week, a preliminary Reuters poll showed.

A fire broke out at Idemitsu Kosan’s 5019.T Chiba refinery early Tuesday afternoon, a company spokesperson said, adding that no further details were available for now.
Source: Reuters (Reporting by Sudarshan Varadhan; Editing by Shilpi Majumdar)