Middle Eastern crude oil benchmarks rise slightly amid supply disruptions caused by Gulf tensions

(1) The Middle East crude oil benchmarks Oman and Dubai recorded a slight weekly increase in spot premiums on Friday, but remained basically flat on the day, as rising tensions in the Gulf region disrupted the outlook for supply. (2) Saudi Aramco on Thursday ordered the evacuation of its headquarters staff in Dhahran, which is near Bahrain, as fighting between the Yemeni Houthi forces and Saudi Arabia has intensified. (3) Oil prices rose on Friday, with Brent crude once reaching the highest level in over five months. (4) The spot premium of Dubai over swaps fell by $0.02 to $8.23 per barrel. (5) In terms of transactions, Unipec will deliver a cargo of December-loading Oman crude to Trafigura, and Glencore will deliver a cargo of December-loading Murban crude to Trafigura. (6) Spot transaction prices were concentrated in the range of $116.50 to $116.90 per barrel. (7) Oman crude oil price rose to $116.77 per barrel from $114.75 in the previous session; its spread over Dubai expanded to $8.10 from $7.60 the previous day. (8) Spot Dubai was quoted at $116.90 per barrel, compared with $115.40 in the previous session. (9) The chairman of Hindustan Petroleum Corporation said that as oil-producing countries holding stranded cargoes at ports offer discounts to offset higher freight rates, the company is increasingly purchasing Middle East crude on a cost, insurance and freight (CIF) basis. (10) Data from the Indian government showed that the country's crude oil imports in September rose by more than 16% from the previous month to 22.26 million tons. (11) The Japanese government is considering reducing gasoline subsidies as early as December, due to concerns that the funding source for this costly measure may eventually run short. (12) The market sentiment is supported by geopolitical risks and supply disruptions, with short-term focus on the evolution of the Gulf situation and how oil-producing countries’ discount strategies may further impact spot premiums.