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Refinetiv data showed that the Brent crude oil futures premium over Dubai in the Middle East dropped to $ 1.25 a barrel, its lowest level since the end of July, after Brent crude fell to its lowest level in seven months.
The contraction in the Brent premium relative to Dubai crude generally stimulates the demand for Brent-related raw materials produced in the Asia-Pacific region as well as in the Atlantic basin.
But traders have said that high freight prices hinder oil flows from the Atlantic Basin Arbitration System, prompting Asian buyers to move closer to their region.
They added that reducing the price difference between the two reference crudes could also reduce demand for Dubai-related raw materials produced in the Middle East and Russia.
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