Middle East Crude-Benchmarks post weekly losses on more offers, US-Iran negotiation hopes

SINGAPORE, Sept 25 (Reuters) - Spot premiums for Middle East crude benchmarks Oman, Murban and Dubai posted weekly losses, following more offers from Gulf producers and sales by Saudi Arabia.

Meanwhile, surging freight and insurance costs also trimmed buying appetite.

US and Iranian negotiators in New York are exploring a phased path out of war that would involve Tehran reopening the Strait of Hormuz and Washington lifting its economic blockade of Iran, sources close to the talks said this week.

Crude oil flows out of the Strait of Hormuz reached 33.7 million barrels so far in the week starting September 20, preliminary ship-tracking data from Kpler showed on Friday, putting exports roughly on track with the previous week's levels.

The traffic comprised 19 tankers, of which 17 are very large crude carriers (VLCCs) that can carry 2 million barrels of oil, the data showed. Most of the tankers are laden with crude from Saudi Arabia, followed by Iraq.

For the full previous week, 49.2 million barrels of crude were shipped out via Hormuz, according to Kpler.

SPOT TENDER

Iraq's SOMO issued a tender offering 2 million barrels of Basrah Heavy crude for loading between October 1 and 7, according to a document reviewed by Reuters on Friday.

Bids must be submitted by Monday 12 p.m. local time (0900 GMT).

China's independent refiner Rongsheng Petrochemical bought one million barrels of Khafji crude from Adnoc Trading Singapore via a tender, trade sources said on Friday.

Indian Oil Corp IOC.NS, the country's largest refiner, has bought 1 million barrels of Iraqi oil on free on board basis for October loading under a tender issued by Iraq's state-run SOMO, two trade sources familiar with the matter said.

SINGAPORE CASH DEALS

Cash Dubai's premium to swaps fell $3.68 to $17.09 a barrel.

PRICES ($/BBL)

NEWS

Ship-to-ship transfers in the Gulf of Oman for Middle Eastern oil from inside the Strait of Hormuz have reached their limits after Saudi Arabia diverted exports from the Red Sea, adding to shipments from other producers, trade sources and analysts said.

Vitol has bought at least 25 million barrels of Iraqi crude in September, two sources told Reuters, as the world's largest oil trader capitalises on its global shipping and logistics clout to help Iraq export oil stranded by the US-Iran war.

BP BP.L is weighing a potential acquisition of Devon Energy's DVN.N operations in South Texas as part of renewed efforts by the British supermajor to grow its shale asset base in the US, people familiar with the matter said.

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