SINGAPORE, Feb 9 (Reuters) - Middle East crude benchmarks declined on Monday, after the U.S. and Iran pledged to continue indirect talks about Tehran's nuclear programme, calming worries about potential supply disruptions.

Both sides described the discussions on Friday in Oman as positive. That eased the concern that a failure to reach a deal might nudge the Middle East closer to war, as the U.S. has positioned more military forces in the area.

Oil prices dropped more than 1% on Monday. O/R

DEALS

South Korean refiner GS Caltex purchased one million barrels of CPC crude from Vitol, SK Energy also purchased one million barrels of CPC crude from TCO, traders said on Monday.

India's state refiners Indian Oil Corp IOC.NS and Hindustan Petroleum Corp HPCL.NS have together bought 2 million barrels of Merey crude from Venezuela for delivery in the second half of April, two trade sources aware of the deal said.

IOC also bought six million barrels of crude from West Africa and the Middle East, traders said, as the Asian country steered clear of Russian oil in New Delhi's push for a trade deal with Washington.

SINGAPORE CASH DEALS

Cash Dubai's premium to swaps fell 13 cents to 80 cents a barrel.

Shell will deliver a April-loading Upper Zakum crude cargo to TotalEnergies following the deals.

PRICES ($/BBL)

NEWS

The European Commission on Friday proposed a sweeping ban on any services that support Russia's seaborne crude oil exports, going far beyond previous piecemeal EU sanctions in its effort to stunt Moscow's key source of income for its war on Ukraine.

Indian refiners are avoiding Russian oil purchases for delivery in April and are expected to stay away from such trades for longer, refining and trade sources said, a move that could help New Delhi seal a trade pact with Washington.

Namibia will not recognise the purchase of offshore stakes in the Luderitz Basin announced last week by TotalEnergies TTEF.PA and Petrobras PETR3.SA until the oil companies follow the proper route for approval, government officials said on Sunday.

Kazakhstan's planned oil exports could fall by as much as 35% this month via its main route through Russia, four trading sources have told Reuters, as the giant Tengiz oilfield slowly recovers from fires at power facilities in January.

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

(Reporting by Siyi Liu in Singapore; Editing by Harikrishnan Nair)

((siyi.liu@thomsonreuters.com;))