Middle East crude benchmarks, specifically Oman and Dubai, saw a rise on Wednesday, while Brent crude futures transitioned to a discount compared to Dubai swaps for the first time since November 2023. According to LSEG data, the Brent-Dubai Exchange of Futures for Swaps (EFS) was assessed at minus 2 cents a barrel at the market’s close at 0430 GMT.
This discount has since expanded to 14 cents per barrel, as reported by trade sources. The discount of Brent against Dubai presents arbitrage opportunities for sweet crude produced in the Atlantic Basin, allowing it to be transported to Asia, according to another trader.
Additionally, the price spreads between dated Brent and Dubai show discounts for contracts scheduled from April to June. In a separate development concerning Russian crude, a ship carrying oil transferred from three smaller tankers, which are under U.S. sanctions, successfully unloaded at a Chinese port last week.
This event concluded a month-long journey that underscored the efforts of producers and traders to sustain Moscow’s oil flow despite increasing restrictions. The Panama-flagged Daban, one of many non-sanctioned vessels attracted by lucrative margins following the January 10 U.S. sanctions, docked at a facility managed by the privately controlled Qingdao Haiye Group in Qingdao.
The Daban had transferred oil from several Aframax-sized tankers that were sanctioned earlier this year. In market dealings in Singapore, cash Dubai’s premium to swaps rose by 2 cents to $1.58 a barrel, with PetroChina set to deliver a May-loading Murban crude cargo to Vitol.
Meanwhile, geopolitics continues to create uncertainty, impacting sales of marine fuel at major global refueling ports. Additionally, industry news includes Eni’s agreement to sell stakes in upstream assets in Ivory Coast and the Republic of the Congo to Vitol, and the Iraqi naval forces’ seizure of an unidentified ship suspected of smuggling fuel in Iraqi waters.