Dubai crude premium drops as sellers outnumber bidders

The spot premium for Dubai crude experienced a significant decline in Singapore, falling by more than 50% to its lowest point in three weeks. This sharp correction comes as a wave of sellers entered the market, contrasting with TotalEnergies SE, which has remained the primary bidder. The Middle East benchmark, a critical pricing indicator for millions of barrels of oil imported into Asia, saw its premium drop to approximately $17 per barrel at Thursday's close. This represents a substantial decrease from $51.20 in the previous session. Market analysts attribute the extreme volatility to the ongoing conflict involving the United States, Israel, and Iran, which has severely disrupted shipping through the Strait of Hormuz.