The Middle East crude oil benchmark premium for Oman rallied to the highest in more than two years on Tuesday, while that for Dubai and Murban strengthened to a 15-month peak.

Prices were lifted by new U.S. sanctions on Russian producers and tankers that are designed to curb the revenues of the world’s second-largest oil exporter.

The U.S. Treasury on Friday imposed sanctions on Russian oil producers Gazprom Neft SIBN and Surgutneftegaz, as well as on 183 vessels that form part of a shadow fleet that has so far allowed Russia to skirt sanctions to get its oil to global markets.

The sanctions have prompted oil refiners in China and India to seek for more supplies from the Middle East, Western African and others, while also driving up oil shipping rates.

Cash Oman’s premium to swaps rose 84 cents to $3.74 a barrel on Tuesday, the highest since November 2022.

Dubai and Murban premiums rose for a second session in the week to $3.74 and $3.80 a barrel respectively, their highest levels since October 2023.
Source: Reuters