Middle East crude benchmark premiums narrowed as Dubai and Oman benchmarks slipped on Wednesday, while Murban was little changed.

Spot premiums for the three benchmark grades narrowed to a range of $1.51-$1.67 versus $1.59-$1.92 on Tuesday.

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 60-80cents per 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 for Arab Light on improving supply from Mexico and Canada.

SINGAPORE CASH DEALS

Cash Dubai’s premium to swaps fell 25 cents to $1.67 per barrel.

Proceeds from oil and gas sales for Russia’s federal budget rose by around 41% in the first half of the year to 5.698 trillion roubles ($65.12 billion), due to rising oil prices and a weaker rouble.

The second bidding round for shares in refiner Citgo Petroleum’s parent was “successful”, with several competitive bids received last month by a U.S. federal court.

U.S. crude oil and distillates inventories fell last week while gasoline rose.

Indonesia’s state-owned energy firm Pertamina is seeking term supplies of 10ppm sulphur gasoil for delivery between September and December.
Source: Reuters (Reporting by Sudarshan Varadhan; editing by Shilpi Majumdar and Jason Neely)