Middle East crude benchmarks extended increases on Monday as market participants continued to price in the risk of potential supply concerns from the ongoing Israel-Iran tensions.

Dubai and Oman premiums soared to their highest in more than two months, while Murban hit over three-month highs.

The premium of Brent crude futures to Dubai quotes also jumped, with the EFS spread hitting a premium of $2.90 a barrel, last higher in August 2024, based on LSEG data.

The ongoing tensions have raised concerns of possible disruption to oil supplies, though oil production and export facilities appear unaffected for now.

Meanwhile, freight rates for very large crude carriers (VLCC) on the Middle East to Asia routes have climbed since the conflict broke out, though industry sources said they are still taking a wait-and-watch stance.

SINGAPORE CASH DEALS

Cash Dubai’s premium to swaps rose 55 cents to $2.07 a barrel.

NEWS

China’s crude oil throughput declined by 1.8% in May from a year earlier to the lowest level since August, official data showed on Monday, as maintenance at both state-owned and independent refineries curbed operations.

Freight rates for Russian oil shipments from the Baltic ports to India eased further in the period from late May to early June, thanks to high tanker availability, but the trend may reverse if Europe’s proposed lower price cap comes to fruition.

All the facilities of energy services firm Baker Hughes are operating normally in the Middle East, chief executive Lorenzo Simonelli told Reuters on the sidelines of the Energy Asia conference on Monday.
Source: Reuters