Spread of crude oil between Brent and Dubai accentuates the response to the conflict in the Middle East

Singapore –
Dubai's reduction in Brent crude has widened as the global crude oil complex has increased after comments from the United States and Saudi Arabia over the weekend intensified. their conflict with Iran.

The gap Brent Dubai Exchange Futures for Swaps reached Monday in Singapore (03:00 GMT) $ 3.43 / b at 11:00, against $ 3.10 / b at the close of trading Friday.

The backwardation at the front of the Brent Curve is also strengthened, as markets have evaluated the statements of US President Donald Trump and Saudi Crown Prince Mohammed bin Salman this weekend regarding a series of news items. attacks near the Strait of Hormuz.

The August / September Brent futures spread tightened at 3:00 am GMT on Monday, against 85 cents / b at 4:30 pm Singapore time on Friday (8:30 am GMT).

At the same time, the same spread on Dubai swaps has also increased, but at a slower pace than for Brent. The August / August exchange in Dubai was 52 cents / b Monday morning, against 44 cents / b on Friday at 16:30 at the close of Asian trading, nearly half of Brent's rise in spreads.

In an interview published Sunday by the Saudi newspaper Ashraq Al Awsat, the crown prince said the kingdom did not want war in the region but "would not hesitate to face any threat to our people, its sovereignty and its vital interests ".

Saudi Oil Minister Khalid al-Falih also called for swift and decisive action against "threats to oil supplies, market stability and consumer confidence", following attacks on oil companies. oil tankers in the region, according to a Saudi oil ministry tweet.

Trump and other top US officials blamed Thursday's attacks on Iran. US officials on Friday released a video allegedly showing that the Iranian Revolutionary Guards were removing a mine from one of the damaged oil tankers on Thursday. The veracity of the video has not been independently verified and Iran has denied the allegations.

"Iran did it and you know it did it because you saw the boat," Trump told Fox News, referring to Iran as " terrorist nation ". Iran's Minister of Foreign Affairs Javad Zarif sent a letter to Twitter in response to US accusations calling them "sabotage diplomacy".

–Esha Muneeb, [email protected]

– Posted by Nurul Darni, [email protected]