SINGAPORE: Brent's premium to Dubai crude fell to its lowest in eight months on Wednesday as the European benchmark traded lower on optimism over oil supply from Libya and Iraq.
Brent-Dubai Exchange of Futures for Swaps (EFS) for August was valued at $3.10 a barrel, down 33 cents from Tuesday's close and the narrowest since November 8.
Brent traded lower for an eighth consecutive session on Wednesday and was on track for its longest losing streak in more than four years.
The drop has helped narrow the gap to Dubai crude after the spread hit a nine-month high of $4.96 per barrel on June 13.
A narrower spread makes Brent-linked grades more attractive than those priced to Dubai and encourages the flow of Brent-linked crude from the Atlantic Basin to Asia.
Combined with weak refining margins, it may also put Dubai-linked grades under pressure when spot trade for September-loading cargoes begins next week.
Comments
Comments are closed for this article.