SINGAPORE, June 2 (Reuters) - Middle East crude benchmarks Oman and Dubai premiums fell on Tuesday, following a sharp decline in futures prices amid hopes of progress in U.S.-Iran peace talks.

Oil prices fell more than 1% on Tuesday, paring the previous session's sharp gains, after U.S. President Donald Trump said talks with Iran were ongoing. O/R

Trump's comments came despite a report that Tehran had suspended indirect negotiations with Washington to end hostilities.

Weak demand also weighed on the market. China, the world's biggest oil importer, is expected to tap deeper into its record crude oil inventories as refiners cut imports further while maintaining output curbs to minimize refining losses amid weak fuel demand.

SINGAPORE CASH DEALS

Cash Dubai's premium to swaps fell $9.42 to $8.98 a barrel.

SELLER-BUYER	PRICE ($/BBL)
BP-TRAFIGURA	92.80
BP-TRAFIGURA	93.80
BP-TRAFIGURA	92.80
UNIPEC-TRAFIGURA	94.80

PRICES ($/BBL)

	CURRENT	PREV SESSION
GME OMAN	91.76	97.32
GME OMAN DIFF TO DUBAI	5.94	12.02
CASH DUBAI	94.80	103.70

NEWS

OPEC+ oil-producing countries will likely agree to a further hike in their output target for July when they meet on Sunday, three sources said, though the Iran war has so far prevented several from delivering previous increases.

August could mark a tipping point for much higher oil prices if demand picks up and the Iran war supply crisis persists, and it could take up to a year for energy supply chains to recover even after the reopening of the Strait of Hormuz, an executive from Abu Dhabi's state oil company said on Tuesday.

U.S. crude exports climbed to a record 5.6 million barrels per day in May as the Middle East crisis pushed up demand for the country's oil from Asian and European refiners, ship tracking estimates showed on Monday.

China's powerful state planner has allowed some independent refiners to cut output from June, consultancies and sources said, a sign of Beijing's growing confidence that it can weather an oil shock triggered by the closure of the Strait of Hormuz.

For crude prices, oil product cracks and refining margins, please click on the RICs below.

Brent	BRENTSGMc1
Dubai	DUBSGSWMc2
GME Oman	OQc1
Brent/Dubai EFS	DUB-EFS-1M
PRODUCT CRACKS
Fuel oil crack	FO180SGCKMc1
Gasoil crack	GO10SGCKMc1
Naphtha crack	NAF-SIN-CRK
Gasoline crack	GL92-SIN-CRK
Complex refining margins	REF/MARGIN1