Oct. 21 (Bloomberg) -- Premiums for Middle East crude oil fell for the first time in eight days on concerns that refinery demand may slow.
Murban, produced by Abu Dhabi National Oil Co., dropped 8 cents to a premium of 23 cents, according to data compiled by Bloomberg. Lower Zakum, also produced in the emirate, declined 8 cents to a premium of 15 cents a barrel, Bloomberg data showed.
Refinery demand for crude in the spot market is starting to wane, said two traders who participate in the market. Companies were still offering cargoes of Murban at premiums of about 30 cents a barrel, the traders said.
The Dubai swaps premium for November widened today compared with January to $1.61 a barrel from $1.51, according to data from PVM. This market situation known as backwardation suggests demand is greater for immediate shipments.
Oman crude for immediate loading rose 15 cents, or 0.1 percent, to $106.26 a barrel, Bloomberg data showed. Dubai oil for loading in December climbed 0.1 percent to $105.63. Murban for spot delivery increased 0.1 percent to $110.45.
Oman futures for December delivery fell 15 cents to $107.90 a barrel on the Dubai Mercantile Exchange at 5:25 p.m. Singapore time with 1,455 contracts traded. The settlement price was $107.75 at 12:30 p.m. in Dubai.
The December Brent-Dubai exchange for swaps, which measures the European marker contract against the Persian Gulf grade, widened 20 cents to $5.30 a barrel, said PVM. The exchange for swaps for January rose 13 cents to $4.79.
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