SINGAPORE- Middle East crude benchmarks were mixed on Thursday, as DME Oman's premium to Dubai swaps rose while cash Dubai's premium dipped.

January spot trading picked up, although sentiment remained weak with traders expecting most, if not all, grades to trade at discounts to their respective official selling prices.

UAE: Japanese refiner Fuji Oil bought two Murban crude cargoes loading in January at levels similar to deals made earlier this week, trade sources said. 

One of the cargoes was priced at $0.45 a barrel below the grade's official selling price (OSP) and the other was at $1.90 a barrel above Dubai quotes, they said.

The company is unlikely to buy any other spot Middle East crude cargoes as it may resume liftings of Iranian crude from January, one of the sources said. 

QATAR: Qatar Petroleum (QP) sold three cargoes of al-Shaheen crude oil loading in January via a tender at an average premium of $0.34 a barrel to Dubai quotes, the lowest premium in eight months, trade sources said. 

Spot differentials for Middle East grades have dropped to multi-month lows because of ample supplies after U.S. waivers allowed Asian buyers to continue importing Iranian oil, and as other Middle East producers ramped up output.

QP sold the cargoes to Chinaoil, Shell and JX Nippon at a wide range of premiums between $0.10 and $0.55 a barrel, the sources said.

The deals could not be independently verified.

QP has also set the term price for January-loading al-Shaheen crude at a premium of $0.51 a barrel, the sources said. 

 

NEWS

The U.S. oil market is scrambling to adjust to a deep selloff over the last several weeks, with forward prices signaling a supply glut which could upend plans for producers and traders through 2019. 

China will cut imports of West African oil to the lowest in seven months in November due to the higher cost of shipments, while South Korean imports from West Africa will reach to an 11-year high as U.S. sanctions hit Iranian crude supplies. 

South Korea's October imports of Iran oil remained at zero for a second straight month ahead of U.S. sanctions against Iran that came into effect on Nov.5, customs office data showed on Thursday.

Without another mega-project like Total's Kaombo on the horizon and fields getting old, Africa's second-largest crude producer is facing a steep decline unless it can revive exploration in what was once one of the world's most exciting offshore prospects. 

Urals crude oil traded at a premium to dated Brent in the Baltic on Wednesday for the first time since 2013, according to trade sources and Refinitiv Eikon. 

Diesel stocks in northwest Europe's refining hub are drying up as inbound tankers are turned away and exports soar in response to the receding Rhine river that has cut off key inland markets.

(Reporting by Florence Tan; Editing by Subhranshu Sahu) ((Florence.Tan@thomsonreuters.com; +65 6870 3497; Reuters Messaging: florence.tan.thomsonreuters.com@reuters.net)) outright prices 0#C-A ))