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Asia-Pacific crude-steady; Malaysia oil price at 3-month low
[SINGAPORE] Asia-Pacific crude market held steady on Monday, weighed down by unsold condensate cargoes from September.
September trade was mixed as values for medium and heavy grades rebounded on support from better middle distillates and fuel oil cracks. But weak naphtha and gasoline margins depressed light crude and condensate values, leaving most of the September-loading unsold.
A wide bid-offer gap for North West Shelf (NWS) condensate stalled trade last week. It was not immediately clear if the remaining five of six cargoes loading in September have been sold.
Traders were meanwhile waiting for Indonesia to announce ICP prices for July. The director general of oil and gas told Reuters late last week that Indonesia is likely to maintain its price formula of using an average of Platts and RIM assessments when setting the alpha for July.
Brent's premium to Dubai swaps, or Brent-Dubai Exchange of Futures for Swaps (EFS) DUB-EFS-1M for October was at US$2.72 a barrel.
The official selling price of a basket of Malaysian crude oil for July-loading has been set at $48.05 a barrel, the lowest since April, a trade source with knowledge of the matter said on Monday.
The July price for flagship Labuan was down US$3.59 a barrel from June.
Opec's oil output is likely in July to reach its highest in recent history, a Reuters survey found on Friday, as Iraq pumps more and Nigeria manages to export additional crude despite militant attacks on oil installations.
Libya's state oil company said on Sunday it welcomed the "unconditional" reopening of blockaded oil ports following a deal between the UN-backed government and an armed force which controls key facilities, saying it would begin work to restart exports from the terminals.
Iran's Oil Minister says the oil market is oversupplied but predicts balance between demand and supply will be restored, Iranian state television reported on Monday.
Iraq's oil exports from its southern ports rose to 3.2 million barrels per day (bpd) on average in July, up from 3.175 million bpd in June, as the OPEC nation increased crude production, two Iraqi oil officials said on Monday.