Brent's premium to Dubai swaps was about $1.90 a barrel for October, a trader said, remaining at narrow levels seen last month.

SAUDI ARABIA: Top oil exporter Saudi Arabia is expected to cut prices for all crude grades it sells to Asia in August to track weakness in Dubai, the benchmark for Middle East oil, several market participants said.

The September OSP for flagship grade Arab Light may fall by 40 to 70 cents a barrel from the previous month, five refiners and traders said in a Reuters survey.

Lighter grades are expected to see larger price cuts in September as Gulf producers Saudi Arabia, Kuwait and the United Arab Emirates have increased light crude supplies to compensate for lost output from Venezuela, Iran and Libya.

Most survey respondents expected price cuts of 50-60 cents for Arab Medium and Arab Heavy grades. However, one respondent said the strength in fuel oil cracks may cap price cuts for these heavier grades.

The respondent added that the OSPs may fall by just 10-20 cents a barrel.

Separately, traders expect ADNOC and Qatar Petroleum to also cut prices when they set retroactive July OSPs. OSP premiums to Dubai quotes for light grades such as Murban and Das may fall by 40 cents while that for Upper Zakum could drop by 35 cents, one trader said.