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Crude prices down despite UN-Iraq impasse

SINGAPORE: Crude oil prices in Asia on Monday extended losses seen in New York despite news that the talks between the United Nations and Iraq have hit an impasse.

Iraq ambassador Abdiul Amir al-Anbari said both sides were close to signing a memorandum of understanding on Friday that would enable Iraq to sell $2 billion worth of oil over six months for humanitarian needs but last minute changes to the text prevented any agreement.

Prompt crude price on NYMEX after trading hours system ACCESS retreated to $23.80/23.88 per barrel after attempts to hold at $24.00 were unsustainable.

Traders expected at least two million barrels of June Oman to head into the U.S. compared to two to three million in April and May. However, traders expressed concerns that Friday's erosion in WTI might put a cap on arbitrage opportunities.

Spot premiums for June Murban and Umm Shaif were bid/asked at 25/30 cents to official selling price. On Friday, a U.S.major bought one million barrels of June Umm Shaif from two equity-producers at 25 cents premium.

Spot prices of Asian crudes eased in tandem with international benchmark prices. May Tapis was assessed around $20.50 with paper at $19.50/20.00. -Reuter