Oman crude oil price spread against Dubai falls to around $4 per barrel, hitting nearly a three-month low

⑴ Although navigation through the Strait of Hormuz continues to be disrupted, a key Middle Eastern crude oil spot benchmark has dropped to its lowest level in nearly three months. ⑵ Data shows that the price spread between Oman crude and Dubai crude has fallen to around $4 per barrel, the lowest since late July. ⑶ This price spread is an indicator of the strength of the Gulf spot crude oil market; at the onset of the conflict, it spiked to over $60 when the Strait of Hormuz was nearly closed and shipping was severely hindered. ⑷ Major crude oil exporters in the Middle East are either risking attacks by allowing tankers to pass through the Strait or using pipelines to bypass and avoid the Strait of Hormuz.