Murban oil falls to 11-month low

Abu Dhabi's Murban crude oil fell to the lowest since August amid excess cargoes as demand declined after refiners met their monthly requirements.

Murban for August loading fell one cent to a discount of 28 cents a barrel, according to data compiled by Bloomberg. That's the lowest level since August 4. Lower Zakum, also produced in the emirate, remained at a discount of 29 cents a barrel.

Increases in supplies sold under long-term contracts from Abu Dhabi for July and competition from Russian East Siberian-Pacific Ocean oil led to a decline in demand for Murban this month. The grade was passed over by refiners as it was perceived as expensive relative to others.

Oman crude for immediate loading dropped $1.63, or 2.2 per cent, to $73.95 a barrel. Dubai for loading in August fell $1.54, or two per cent, to $73.77. Abu Dhabi's Murban grade dropped 2.3 per cent to $74.38. Oman futures for August delivery slipped $1.14 to $73.76 a barrel on the Dubai Mercantile Exchange with 1,113 contracts traded.

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