Key insights
- Middle East crude oil premiums surged to record highs due to escalating Iran-Israel tensions and attacks on energy facilities. This supply shock could lead to higher energy prices globally, potentially contributing to inflationary pressures in the US and negatively impacting consumer spending and corporate earnings. The widening Brent-Dubai spread further complicates the global oil market dynamics.
Investing.com -- Middle East benchmark crude oil premiums reached all-time highs on Thursday, with Dubai and Oman trading at approximately $65 per barrel above their reference prices, driven by supply concerns following Iran’s strikes on regional energy facilities, according to trade sources and Reuters data.
The spike follows Tehran’s retaliatory action against Israeli attacks on Iranian gas facilities, marking an escalation in the nearly three-week conflict that has sent spot premiums sharply higher.
Cash Dubai was assessed at a record $166.80 per barrel for May-loading cargoes on Thursday, compared to $114.17 for the ICE Brent contract.
Dubai’s premium to swaps reached $65.42 a barrel on Thursday, a substantial increase from an average of 90 cents in February.
Oman crude futures climbed to near $167 per barrel, also a record high, with its premium to Dubai swaps at $65.58 a barrel. This compares to an average of just 75 cents in February.
The spread between Brent and Dubai swaps widened to $12.79 per barrel, according to LSEG data.
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