Middle East Spot Crude Premiums Extend Declines as Ample Supply Dampens Buying Interest

⑴ Middle East benchmark crude Oman and Dubai spot premiums extended declines on Tuesday, with ample supply and weak buyer appetite pressuring the spot market.

⑵ Gulf producers and traders have lowered offers to attract demand, while buyers are in no rush to purchase as Hormuz transit volumes recover, with a strong wait-and-see sentiment prevailing.

⑶ Dubai cash crude's premium to swaps fell about $0.93 to around $5.92 per barrel, and Oman's spread to Dubai also narrowed from the previous session, with spot deals concentrated near $115 per barrel.

⑷ Separately, sources said OPEC+ producers may keep December output targets unchanged at Sunday's meeting, with the focus shifting to 2027 quota negotiations, a prospect also weighing on spot premiums.

⑸ In the near term, if Hormuz flows continue to recover and producers maintain output, Middle East spot premiums may stay weak, with attention on OPEC+ meeting outcomes and Asian refinery buying pace.