Narrowing Brent-Dubai spread is said to boost Asian appetite for Atlantic crude

[Oil and gas sea platform in Norway. Energy industry. Petroleum]
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Asian refiners are finding oil from the Atlantic basin more attractive as the Brent-Dubai exchange of futures for swaps (EFS) has fallen to nearly zero, down from about $4 a barrel in June, Bloomberg News reported Wednesday, citing data from PVM Oil Associates. The narrowing gap makes crude priced against Brent (CO1:COM [https://seekingalpha.com/symbol/CO1:COM]), including grades from the North Sea, West Africa and the Mediterranean, more competitive against Middle Eastern supplies.

Brent’s weakness reflects softer seasonal demand in Europe, higher U.S. exports and growing regional supply, which has pushed excess barrels toward Asia. Sparta Commodities noted the arbitrage window has “found at least a temporary way to clear into Asia,” Bloomberg News reported.

Dubai prices, meanwhile, have been supported by Indian purchases after cuts in Russian imports and stronger derivative activity in Platts’ pricing window. This comes despite OPEC+ pledging to restore some production earlier than planned and Saudi Arabia lowering official selling prices.

With Brent under pressure from surplus cargoes in the North Sea, Asian buyers have turned to West Africa. Traders said refiners including Indian Oil, Hindustan Petroleum, and Pertamina have bought at least five shipments from the region since early September.

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