Middle East crude benchmarks rose on Tuesday, while the premium of Brent crude futures to Dubai quotes widened sharply to a six-month high at the Asia close.

Cash Dubai’s premium to swaps rose 48 cents to $2.73 a barrel on Tuesday, hitting ten-month highs.

Oman’s premium climbed 38 cents to $2.62 a barrel, while Murban’s premium edged higher at $3.87 a barrel, both reaching seven-month highs.

The Brent’s Exchange Futures for Swaps (EFS) to Dubai for November had jumped to a premium of $2.74 a barrel at 0830 GMT, more than doubled from the previous day, LSEG data showed.

The uptick was driven by a sudden surge in U.S. West Texas Intermediate (WTI) crude prices, which in turn pulled global benchmark Brent higher and widened the EFS spread.

The surge has shut off arbitrage routes for crude from the United States to Europe and Asia, while preventing oil from the Atlantic Basin to head east, traders said.

SINGAPORE CASH DEALS

Cash Dubai’s premium to swaps rose 48 cents to $2.73 a barrel.

NEWS

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U.S. oil output from top shale-producing regions is on track to fall for a third month in a row in October to the lowest level since May 2023, the U.S. Energy Information Administration said in its monthly drilling productivity report.

Mexican state energy company Pemex has resumed dealing with Vitol, three sources with direct knowledge told Reuters, nearly three years since deals with the world’s largest independent energy trader were banned over a graft scandal.
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Krishna Chandra Eluri)