A key benchmark for Middle East crude fell to its lowest in nearly three months, signaling resilient exports despite intensifying Iranian attacks on shipping. The premium of Oman crude over Dubai dropped to near $4 a barrel, the lowest since late July, according to General Index data. Major exporters have successfully moved tankers through the Strait of Hormuz or bypassed it via pipelines, eroding Iran's leverage.
US Secretary of State Marco Rubio stated oil flows through Hormuz are near prewar levels. Data from Kpler and Vortexa show Middle East exports have surged since summer. "Gulf crude oil market has been pressured" by ample supply, said June Goh of Sparta Commodities SA. While physical crude reflects improved supply, futures trade on fears of tighter supply ahead.
Brent crude rose near $112 a barrel amid concerns Iran could intensify strikes. Iraq restored exports with discounts up to $37 a barrel. The UAE ramped up production to record highs, and Saudi Arabia's output jumped to over 8 million barrels a day.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing