Middle East crude benchmarks Oman, Dubai and Murban rose on Tuesday, supported by firm demand in Asia as alternative supplies from other regions are becoming more expensive.

Brent’s premium to Dubai crude DUB-EFS-1M extended gains, rising 40 cents to $2.65 a barrel, the highest since October 2023.

The widening spread between the two benchmarks makes Middle East crude more attractive to Asian buyers, compared to supply from the Atlantic Basin which is priced off Brent.

South Korean refiners SK Energy, GS Caltex and Hyundai Oilbank have been buying Abu Dhabi light grades Murban, Das and Umm Lulu to replace U.S. West Texas Intermediate (WTI) Midland which have become costly, traders said.

IFAD Murban’s premium to Dubai quotes rose to $1.19 a barrel on Tuesday on the back of rising demand.

In comparison, WTI Midland cargoes are offered at more than $5 a barrel above Dubai quotes on a delivered basis, traders said.

ASIA-PACIFIC CRUDE

Six Kimanis crude cargoes will be loaded in October, double that of September and returning to usual monthly volumes, as maintenance works are expected to be completed, a trader said.

OPEC on Monday cut its forecast for global oil demand growth in 2024 citing softer expectations for China, a reduction that highlights the dilemma faced by the wider OPEC+ group in raising production from October.

The U.S. is seeking to buy another 6 million barrels of oil from energy companies to help replenish the Strategic Petroleum Reserve, the Department of Energy said on Monday.

Chevron CVX.N has achieved a technological breakthrough, producing first oil from a U.S. Gulf of Mexico field under extreme subsea pressures, the energy company said on Monday.
Source: Reuters (Reporting by Florence Tan; Editing by Varun H K)