SINGAPORE: Middle East crude benchmark Dubai weakened on Monday, falling to a discount against swaps, while ADNOC cut official selling prices across its three grades, underscoring weak market sentiment.
"Considering this month's Dubai spread and sentiment, which is a bit weak for the Chinese, there is a higher chance to trade at discounted level," a trader said, referring to May-loading cargoes that will move this month.
March-April Dubai spread slipped into a contango of 3 cents a barrel on Monday, Reuters data showed.
UAE: ADNOC said on Monday it has set the February retroactive official selling price for its benchmark Murban crude <MUR-OSP> at $66.15 per barrel.
That puts February Murban's OSP premium to Dubai quotes at $3.43 a barrel, down 13 cents from the previous month.
Price cuts across all grades were in line with market expectations, traders said.
The price cut for Murban was smaller because ADNOC plans to reduce its supplies by 25 percent in April, a trader said.
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