Middle East benchmark surges to highest level since March as Saudi Arabia attack sparks supply fears

⑴ Middle Eastern crude oil benchmark spot premiums further strengthened on Tuesday, with Oman, Dubai, and Murban crude all rising to their highest levels since late March. This comes after Yemeni Houthi forces attacked Saudi energy facilities, injuring 73 people. The Saudi side called this a dangerous escalation. ⑵ Houthi actions, backed by Iran, combined with Iran's threat of economic warfare against the U.S., have heightened market concerns over supply stability in the Gulf region, causing oil prices to hit multi-week highs. ⑶ Although Brent crude has rebounded this month, oil prices have still failed to breach the $100 per barrel mark, restrained by export disruptions in the Red Sea and Strait of Hormuz, as well as escalating tensions between the U.S. and Iran. ⑷ In spot trading, the Dubai cash premium over swaps rose by $2.69 on the day to $22.40 per barrel. An institution sold Dubai spot crude to another institution at $111.50 per barrel, while the previous day Dubai cash settled at $105.10 per barrel. ⑸ QatarEnergy released a tender to sell September-loading Al Shaheen crude, with bidding closing on Wednesday. The market will be watching the achieved premium level for this tender. ⑹ Further attention should be given to the progress of Saudi facility recovery following the attacks, as well as the impact of Strait of Hormuz navigation safety on Middle Eastern pricing.