Key facts
- Oman crude premium over Dubai fell to $4.22 per barrel.
- This differential had previously soared to $65 in March.
- Increased oil flows are tying up supertankers, limiting availability for other routes.
The premium of Oman crude over Dubai, a key metric for Middle East physical supply strength, has fallen to $4.22 per barrel this week, its lowest point since late July. This decline is attributed to a recent acceleration in crude oil flows from the region, with tanker-tracking services indicating volumes are exceeding pre-war levels. Producers have increased shuttle-shipping through the Strait of Hormuz and utilized ship-to-ship transfers in the Gulf of Oman. Despite the recovery in oil flows, freight rates have reached record highs due to a shortage of available supertankers, which are increasingly tied up in the Gulf of Oman for transfers.