Middle East physical oil off to strong start on demand revival

SourceArabian Business
SectorOil & Gas
CountryMiddle east

Premiums for August-loading Oman oil surged against the region’s main pricing benchmark and timespreads for Dubai crude rallied

The physical market for Middle Eastern crude started the month strongly, backed by expectations for robust Asian demand and the likelihood of less supply leaving the US and Europe due to the recovery in those regions.

Premiums for August-loading Oman oil surged against the region’s main pricing benchmark and timespreads for Dubai crude rallied. While Covid-19 continues to plague countries such as India, falling infection rates and an easing of lockdowns are setting up even the worst-hit Asian nation for a rebound.

More cars have returned to the roads in countries such as China and Japan, according to mobility data from Apple Inc. Traffic in 15 European cities was as busy as in 2019, while utilisation rates at US refineries climbed to the highest level in more than a year.

Rapid vaccination rollouts across many developed economies are aiding sentiment on energy demand, supporting the...read more...