SINGAPORE, May 29 (Reuters) - Dubai Middle East crude benchmark premium jumped to its highest since early April on Friday, boosted by increased trade activity.

Despite the surge in the last trading day, Dubai premium averaged at $9.11 per barrel for this month, down from April's average at $13.92, as spot demand weakened despite supply disruptions stemming from tensions in the Middle East.

The lower premiums for Dubai and Oman prompted expectation that Saudi Arabia is likely to cut its official selling prices (OSPs) for crude oil to Asia in July for a second month.

Oil futures steadied on Friday but were on track for their steepest weekly decline since early April after reports that the U.S. and Iran had reached agreement on a potential ceasefire extension. O/R

TENDER

State refiner Indian Oil Corp (IOC) IOC.NS bought 5 million barrels of crude oil from West Africa and the Middle East via a tender this week, trade sources said on Friday.

IOC purchased Angola's Kissanje and Nemba crude for delivery to its Paradip refinery, the sources said.

The company also bought Nigeria's Usan crude from ExxonMobil XOM.N and Abu Dhabi's Murban crude from Mercuria for delivery to Vadinar.

IOC also purchased Murban crude from Totsa, the trading arm of TotalEnergies TTEF.PA, for delivery to Chennai, the people said.

The West African cargoes traded at premiums of around $4 a barrel to dated Brent, while Murban cargoes were sold flat to a slight premium to dated Brent, they added.

SINGAPORE CASH DEALS

Cash Dubai's premium to swaps rose $5.73 to $18.40 a barrel.

For this month, trading activity has been scarce. BP sold one cargo or 500,000 barrels of July-loading Oman crude to Vitol.

PRICES ($/BBL)

NEWS

The Philippines received an Iranian crude cargo this month, ship-tracking data shows, likely the country's first since the Iran war disrupted supplies from the Middle East.

Ousted BP BP.L Chairman Albert Manifold met with activist shareholder Elliott Management during his tenure without telling fellow board members directly, two sources with knowledge of the matter told Reuters.

The U.S. said on Thursday it has imposed new sanctions on Iran's military oil trade, even as Washington and Tehran reached a tentative agreement to extend their ceasefire and lift restrictions on shipping through the Strait of Hormuz.

Japan's crude oil imports fell nearly 66% in April from a year earlier, the Ministry of Economy, Trade and Industry (METI) said on Friday, as the U.S.-Iran conflict disrupted supplies from the Middle East.

French oil major TotalEnergies TTEF.PA made the decision to buy large amounts of Middle East crude in March after its traders noticed the U.S. Navy amassing ships near the Gulf in February, its CEO told French newspaper Le Figaro in an interview published on Thursday.

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