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Physical Asian Crudes Rally on Saudi and Russia Cuts

OIL

Along with the rally in Brent on tightening supplies, key physical crude market indicators in Asia have also strengthened further after Saudi Arabia and Russia extended voluntary supply cuts according to Bloomberg.

  • Prompt inter-month swaps for Middle Eastern benchmark Dubai oil were at more than 1$/bbl and near the widest backwardation since early April.
  • Key Persian Gulf grades rallied against Dubai swaps, indicating expectations for tighter supply and healthy demand.
  • Abu Dhabi’s Murban crude futures against Dubai swaps rallied to the highest in more than a week, while Oman premium versus Dubai stayed near the strongest since June at about 2$/bbl.

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