Middle East Crude-Benchmarks hit near two-week high

SINGAPORE, Aug 20 (Reuters) - Middle East crude benchmark spot premiums of Oman, Dubai and Murban extended gains on Wednesday to their highest in nearly two weeks.

Traders attributed the strength to closing arbitrage of U.S. crude to Asia and firm buying of some of the grades. India's resumed buying of Russian oil, however, is expected to weigh down the prices.

India's state-run refiners Indian Oil IOC.NS and Bharat Petroleum BPCL.NS have bought Russian oil for September and October delivery, resuming purchases after discounts widened, Reuters reported on Wednesday.

The resumption in Russian oil imports by Indian state refiners could reduce supplies for top buyer China, which had stepped up purchases during their absence.

The refiners halted purchases in July due to narrower discounts and after India was criticised by Washington for its purchases of Russian oil. President Donald Trump also threatened an additional 25% levy on Indian goods, effective August 27, to penalize New Delhi for its continued buying of the oil.

Discounts for Russian flagship Urals crude have widened to about $3 per barrel, making the oil attractive for Indian refiners, while China has stepped up purchases, the officials said.

In addition to Urals, IOC has bought other Russian crude oil grades, including Varandey and Siberian Light, they said.

SINGAPORE CASH DEALS

Cash Dubai's premium to swaps rose 33 cents to $2.61 a barrel.

Phillips 66 will deliver an October-loading al-Shaheen crude cargo to PetroChina following the deals.

Hengli and Reliance will each deliver an October-loading Oman crude cargo to PetroChina following the deals.

ExxonMobil will deliver an October-loading Oman crude cargo to Trafigura following the deals.

NEWS

China's fuel oil imports rose further in July, hitting their highest in seven months, customs data showed on Wednesday.

Ten South Korean petrochemical companies have agreed to restructure their operations, including large cuts to their naphtha-cracking capacity, government officials said on Wednesday.

Mergers and acquisitions in the U.S. oil and gas sector more than quadrupled last year despite softer commodity prices as energy companies boosted spending to improve efficiency and profits, according to an Ernst & Young study published on Tuesday.

India's Russian oil imports declined in July after jumping the previous month as some refiners slowed purchases due to smaller discounts, while Indian fuel demand also typically dips during the monsoon season, according to trade sources and data.