Middle East crude benchmark premiums fell on Monday amid a broader market selloff due to recession worries in the United States.

Spot premiums for the three benchmark grades traded in a range of 60-65 U.S. cents on Thursday, compared with 85-91 cents at the end of last week.

Oil futures extended losses in a volatile session on Monday as fears of a recession in top oil consumer United States offset supply worries stemming from mounting tensions in the Middle East, the world’s largest oil-producing region.

SAUDI OSP

Top oil exporter Saudi Arabia raised the price for the flagship Arab light crude it sells to Asia in September for the first time in three months, while cutting prices to the other regions.

The official selling price for Arab Light crude to Asia rose by 20 cents to $2 a barrel above the Oman/Dubai average in September, Saudi Aramco said in a statement on Sunday. The price was a two-month high, but the hike was less than the market had expected.

The producer also raised prices for other light grades sold to Asia but kept Arab Medium and Arab Heavy crude prices unchanged.

NEWS

Money managers cut their net long U.S. crude futures and options positions in the week to July 30, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.

Japan’s gasoline imports are expected to stay elevated through August after rising 20% in June as outages at its refineries are reducing output during peak summer demand season.
Source: Reuters (Reporting by Sudarshan Varadhan; Editing by Jan Harvey and Vijay Kishore)