Middle East Physical Crude Slides While Brent Hits Five-Month High

AI Summary

Physical Middle Eastern crude prices have weakened even as Brent futures reached a five-month high. Iraqi and Omani grades have been offered at steep discounts as Gulf crude continues moving through ship-to-ship transfers offshore Oman and producers compete for Asian buyers.

In contrast with the international benchmark futures prices, the prices of physical crudes from the Middle East have softened this week, as oil continues to flow out of the Persian Gulf in ship-to-ship transfers offshore Oman and producers offer competitive prices to Asian buyers. Some crude grades from Iraq and Oman have sunk into deep discounts to the physical Dubai benchmark. Iraq’s Basrah Medium, for example, was recently sold at a discount of $10 per barrel to the Dubai benchmark, compared to near parity to Dubai crude a month ago, traders…