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Traders Buying Middle East Crude at Additional Premiums

OIL

Crude traders are paying additional premiums above OSPs for Middle East loading cargoes in early 2024, seeking to lock in supply amid heightened geopolitical risk, according to Reuters.

  • Premiums for most grades were stable, but some Murban and Oman cargoes with 5% operational tolerance were sold at premiums 30-35 cents/b above the OSPs, Reuters said.
  • Cargoes with lower operational tolerances of around 0.2% saw narrower premiums to the OSPs. Murban crude was traded at around a 10-12 cents/b premium, while Oman was sold at a 4-5 cents/b premium, sources told Reuters.
  • Traders have been willing to pay even higher prices to secure cargoes amid continued concern for regional supply should the conflict in Israel could widen across the region.

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