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Crude prices drift,

awaiting fresh leads

from London

SINGAPORE: Spot crude prices drifted in Asia awaiting fresh leads from London after IPE was closed Monday on a UK bank holiday.

Oct 15-day Brent quotes was little changed from US levels of $16.15/16.20 while SIMEX Brent traded down to $16.17 in late trade from Monday's $16.23 close. Oct Brent settled Friday on the IPE at $16.17, with some expecting it to test $16.10 today.

A stronger Brent on the back of US buying support kept the Brent/Dubai spread wide at 80/85 for October and 73/77 for November. Tapis paper saw offers at $17.15-17.20 for Sept and Oct, reflecting pressure from unsold September barrels.

More wet trades done Friday emerged, with a partial 200,000 barrel lot of Oct Lower Zakum sold to US major at ADNOC plus 28 cents. The major had bought 350,000 barrels at plus 30 cents.

October Oman, weighed down by amply supplies, was assessed at around parity to MPM and possibly slipping into discount. A major was said to have sold one at MPM flat, and a Japanese trading house at MPM minus one cent.

The first October ex-Banoco Arab Medium went to a Japanese refiner last week at the formula minus 45 cents, a marked improvement on the last Sept cargoes where discounts were as big as 75 cts.

Arab Medium's price was possibly pulled up by lack of light Mideast crudes remaining for October, traders said.

Further demand from Asia for light crudes ahead of winter mid-distillate needs could boost demand for West African grades.

More Japanese refiners could bring in lighter West African crudes like Escravos, Qua Iboe, Pennington after one last week fixed 1.6 million barrels of Bonny Light and 300,000 barrels of Bonny Medium for late-September loading.

In regional grades, a Japanese utility was said to have bought 125,000 barrels of Sept Minas at ICP plus about 10 cts.-Reuter