December 18, 2023 11:06 GMT
Medium Sour Middle East Crude Prices Fall
Medium sour crude from the Middle East is falling relative to the Dubai benchmark amid muted Chinese demand and a recent spike in supplies according to Bloomberg sources.
- The Oman premium has dipped, and Qatar’s Al-Shaheen crude last week traded at a discount to Dubai for the first time since October 2020.
- The downside pressure has been driven by a drop in Chinese crude demand as import quotas drawdown and with flows of Venezuelan crude and fuel oil to nations such as China and India.
- Extended maintenance at a refinery in Oman also resulted in less domestic use and more exports to drive a bearish contango structure for Dubai according to Energy Aspects.
- The price of medium-density crudes with high sulfur content had been supported earlier this year due to Saudi cuts, demand from Asian refiners and robust diesel margins.
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