Spot premiums for Middle East crude benchmarks Oman, Dubai and Murban rose on Tuesday, cementing a strong start to September, rising to over $2 a barrel to Dubai quotes.

The premiums are about $1 a barrel higher than last month’s average, Reuters data showed.

SAUDI OSP

Top oil exporter Saudi Arabia is expected to cut prices for most of the crude grades it sells to Asia in October after Middle East benchmark Dubai slumped last month, industry sources said on Monday.

The October official selling price (OSP) for flagship Arab Light crude is expected to fall between 50 and 70 cents a barrel, three of five refining sources said in a Reuters survey, to track a similar trend for Dubai price spreads last month.

SINGAPORE CASH DEALS

Cash Dubai’s premium to swaps was at $2.06 a barrel, up from an $2.03 on Monday and an average of 90 cents a barrel last month.

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Japan will spend about 989 billion yen ($6.73 billion) from its reserve fund to cover energy subsidies designed to ease the burden on households, Finance Minister Shunichi Suzuki said.

Yemen’s Iran-backed Houthi rebels attacked two crude oil tankers – the Saudi-flagged Amjad and the Panama-flagged Blue Lagoon I – in the Red Sea, the U.S. military said, calling the assaults “reckless acts of terrorism”.
Source: Reuters (Reporting by Sudarshan Varadhan; Editing by Alan Barona)