Middle East Crude-Supported by tighter gas oil supplies

The Middle East crude market remained buoyed by concerns over tightening gas oil inventories globally, traders said.
Benchmark Abu Dhabi Murban crude was pegged at a premium of around 25 to 30 cents to the official selling price (OSP), up nearly 5 cents from levels seen transacted late last week.
At least one October loading cargo traded at a premium of about 25 cents to the OSP.
"In addition to refinery maintenance, we also see that inventories globally are pretty thin. This is a supportive factor, especially since we are already looking at the fourth-quarter," a Singapore-based trader said.
"We are going into the peak demand season for heating oil and if we don't see inventories pick up that leaves markets vulnerable to price distortions in the case of a harsh winter."
Some traders are also looking at Chinese demand to remain robust going into the end of the year, which will support the market further.
"My view is that we'll see a turnaround in the Chinese economy the next few months, it's not going to be as sluggish," a trading source with a financial institution said.
"I also see stockpiling in China increasing in the coming months."
Asia gas oil cracks continue to be supported, having gained 41 cents to a premium of $19.55 per barrel to Dubai crude in September, while the October crack rose 56 cents to a $19.32 per barrel premium to Dubai.
TRADES
- There were no over-the-counter (OTC) trades on Wednesday.
REFINERY
- Gazprom Neft, operator of the 220,000 barrels-per-day Moscow refinery, said part of the plant would be shut for two months of maintenance from September 21, without saying which units would be shut. The company said it was switching to a four-year maintenance cycle from a two-year cycle.
MARKET NEWS
- Asia's crude imports from Iran are set to recover in September to levels reached before a July 1 insurance ban by the European Union plunged trade with the Islamic Republic into uncertainty not seen in decades.
Source: Reuters