SINGAPORE, June 10 (Reuters) - Middle East crude benchmark premiums for Oman, Dubai and Murban extended declines on Wednesday, weighed down by optimism around increased supply in the market.

Kuwait Petroleum Corp (KPC) was offering 4 million barrels of crude via tender, the first offer since the conflict began, according to a source with direct knowledge of the matter.

The oil, which is outside the Persian Gulf, was being offered to buyers in Asia.

Kpler said in a report on Tuesday that two Very Large Crude Carriers (VLCCs) had exported crude through the Strait of Hormuz with their AIS transponders switched off.

The news boosted the supply outlook, as oil flows via the key strait have been largely constrained since the U.S.-Israel conflict with Iran began at the end of February.

Oil prices were steady on Wednesday as traders assessed renewed U.S.-Iran hostilities, though a forecast U.S. stock draw offered support. O/R

SINGAPORE CASH DEALS

Cash Dubai's premium to swaps fell $1.90 to $3.72 a barrel.

SELLER-BUYER	PRICE ($/BBL)
SHELL-VITOL	87.70
SHELL-PETCO TRADING	87.10
SHELL-GLENCORE	87.10

PRICES ($/BBL)

	CURRENT	PREV SESSION
GME OMAN	86.47	88.59
GME OMAN DIFF TO DUBAI	3.09	4.91
CASH DUBAI	87.10	89.30

NEWS

China has issued its second batch of fuel export quotas for this year, totalling 18 million metric tons, with overall levels largely steady year-on-year despite existing export restrictions, four trade sources said.

BP BP.L said on Tuesday that company veteran Gordon Birrell will lead its upstream unit and Richard Harding will serve as interim head of downstream as part of a previously announced organisational shift to two main business segments.

Malaysia is seeking new sources of fuel amid a global crunch caused by the war in Iran, though any supplies would need to be able to be processed by the country's refineries, the country's economy minister said on Wednesday.

Italian refineries have ramped up the production of jet fuel this year to reduce the country's dependence on imports that have become more costly due to the Middle East crisis, the head of national fuel producers association UNEM said on Wednesday.

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