SINGAPORE: Middle East crude benchmark Dubai edged up on Tuesday, supported by purchases from oil majors and Western trading companies.
Shell, BP, Koch and Gunvor bought 16 December Dubai partials mostly from Chinaoil, Reliance and Total during the window, trade sources said. Most of the deals were done at $50 a barrel, equivalent to 15 cents a barrel above swaps, up 9 cents from the previous session.
Outside of the window, a cargo of December-loading Dubai crude has been sold to an end-user, traders said. Price and seller were not immediately known.
Trade for December-loading cargoes will pick up on Wednesday as Qatar's Tasweeq will close a tender to sell six al-Shaheen cargoes. The spot sales volume is double that of November, likely due to lower term commitment, traders said.
BASRA
Iraq plans to trim crude oil exports from its southern ports to 3.24 million barrels per day (bpd) in November from 3.28 million bpd planned for the previous month, two trade sources said on Tuesday.
Basra Light crude exports in November are expected to fall by 260,000 bpd to 2.34 million bpd, they said, citing a preliminary loading programme from Iraq's Oil Marketing Co (SOMO).
November exports of Basra Heavy crude are set to rise by 223,000 bpd to 900,000 bpd.
The drop in Basra Light supplies in November could support the grade's spot premiums, one of the sources said, offsetting a smaller than expected cut in the grade's official selling price in the same month.
The rise in November Basra Heavy supplies, on the other hand, could cap the grade's premiums although it remained to be seen if term lifters would re-sell their cargoes, he said.
Basra Light cargoes for October loading were traded at 20 cents to 40 cents a barrel above its OSP (Official Selling Price).
Premiums for October-loading Basra Heavy rose to as high as $1.10 to $1.30 a barrel to its OSP after SOMO cut supplies, the sources said.
OSP
Kuwait cut its November OSP for crude sales to Asia by 15 cents to $1.90 a barrel below Oman/Dubai quotes, a source with knowledge of the matter said on Tuesday.
The price cut for Kuwaiti oil was 5 cents more than the drop seen for similar quality Arab Medium crude from Saudi Arabia.
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