DME Oman crude surges on tighter supply, strong pull from China – ZAWYA

DME Oman crude surges on tighter supply, strong pull from China – ZAWYA

The higher benchmark price has been driven by tighter supplies and a push to deliver more oil into a contract in Shanghai, the sources said.. DME Oman crude has averaged a discount to Dubai quotes of $6.34 a barrel so far this month, about $3 a barrel more expensive than the cash Dubai prices set by S&P Global Platts, according to market participants and Reuters calculations.. Saudi and Kuwaiti oil in Asia is priced off an average of DME Oman and Platts Dubai prices.. Chinese traders, meanwhile, are hunting for more Middle East crude to fill new storage space listed by the International Exchange Energy (INE) in Shanghai to capitalize on a wide price spread between Shanghai crude oil futures and international oil prices, the sources said.. Shanghai crude oil futures have maintained a rare premium of nearly $10 a barrel over ICE Brent, thanks to two months' bidding by Chinese investors betting on a price recovery and limited storage space..