Oman crude premium over Dubai falls to $4.22 per barrel — OilPrice

The premium of Oman crude over Dubai fell to $4.22 per barrel this week, its lowest level since late July. Greater availability of physical Middle Eastern oil cargoes weakened this regional market indicator, OilPrice reports. General Index data cited by Bloomberg indicate a narrowing of the spread.

Spread narrows after September peak

In mid-September, the Oman premium over Dubai reached $30 per barrel, but subsequently declined to just over $4. In March, the difference between the quotations reached $65 per barrel, when the Strait of Hormuz was effectively closed and oil cargoes were not leaving the Middle East.

For three weeks in mid-June and early July, the Oman premium moved into a discount amid attempts by the United States and Iran to reach an agreement. In August, and especially in September, the spread rose again after hostilities resumed.

More current news is available on the UA.News Telegram channel Telegram.

Oil flows recover amid high transportation costs

In recent weeks, Middle Eastern producers have accelerated oil shipments through the Strait of Hormuz and ship-to-ship transfers in the Gulf of Oman. This has contributed to the recovery of flows, and some tanker-tracking services say they already exceed pre-war levels.

At the same time, transporting oil from the region remains expensive: freight rates, according to the publication, have risen to record levels because of a tanker shortage. Ship-to-ship transfers in the Gulf of Oman delay supertankers for weeks, limiting the availability of very large crude carriers for other routes, including between the U.S. Gulf Coast and Asia.