Sentiment in the Middle East crude market improved after top producer Saudi Arabia lowered its official selling price (OSP) for crude to Asia, a move that traders said would help support demand.
The producer cut its Arab Light crude price for Asian buyers in September by 80 cents a barrel, more than the 60 cents expected by traders, while the Arab Medium and Arab Heavy grades were cut by $1.20 a barrel, more than the $1 drop predicted in a Reuters poll last week.
The OSP for Arab Super Light was raised by 50 cents a barrel, while that for Arab Extra Light was left unchanged.
Separately, Abu Dhabi National Oil Co (ADNOC) said on Monday it had raised the July retroactive official selling price (OSP) for its key Murban crude by $4.40 a barrel from June to $101.75 a barrel.
The differentials of ADNOC’s prices to the Dubai benchmark narrowed, with Murban’s premium dropping to $2.60 from $2.91 last month and that for Upper Zakum down to 70 cents from $1.21 last month.
There were no trades in the over-the-counter window on Monday although there were three bids and four offers.