Crude oil from the Middle East for sale to Asia fell to a discount against its benchmark after producers raised official selling prices.
Lower Zakum, produced by Abu Dhabi National Oil Co., dropped 6 cents to a discount of 3 cents a barrel to its official selling price, according to data compiled by Bloomberg. Qatar Land declined 11 cents to a discount of 8 cents a barrel, Bloomberg data showed.
Both grades had their official prices raised this week to the highest against benchmark Dubai since May. The increases came as prompt prices for Dubai have risen compared with later dated supplies, a market situation known as backwardation that suggest demand is greater for immediate shipments.
Dubai swaps for December narrowed to a premium of 92 cents a barrel today over January after reaching a two-week high yesterday of 96 cents, according to data from London-based brokers PVM Oil Associates Ltd.
Oman crude for immediate loading increased $2.63, or 2.7 percent, to $99.82 a barrel, Bloomberg data showed. Dubai oil for loading in December rose 2.7 percent to $99.24. Murban for spot delivery climbed 2.5 percent to $103.85.
Oman futures for December delivery gained 45 cents to $99.95 a barrel on the Dubai Mercantile Exchange at 4:59 p.m. Singapore time, with 1,246 contracts traded. The settlement price was $100.14 at 12:30 p.m. in Dubai.
The November Brent-Dubai exchange for swaps, which measures the European marker contract against the Persian Gulf grade, widened 7 cents to $5.12 a barrel, according to data from PVM. The exchange for swaps for December rose 11 cents to $4.22.