Brent crude flips to discount against Dubai, first time since Nov 2023, data shows
SINGAPORE, March 19 (Reuters) - Brent crude futures flipped to a discount against Dubai swaps on Wednesday, the first time since November 2023, LSEG data showed, underscoring the strength of Middle East sour oil versus the global sweet crude benchmark.
The Brent-Dubai Exchange of Futures for Swaps (EFS) was assessed at minus 2 cents a barrel at Wednesday's market close at 0430 GMT, LSEG data showed.
The discount has since widened further to 14 cents a barrel, two trade sources said. Sweet, or low-sulphur oil, is typically more expensive than those with higher sulphur content as they are easier to process.
Brent's weakness against Dubai has opened up arbitrage opportunities for sweet crude produced in the Atlantic Basin to head to Asia, another trader said.
The price spreads between dated Brent and Dubai are also in discounts for April to June contracts, he added.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
32 minutes ago
- Reuters
US EPA to propose renewable fuel credits generated through imported feedstocks to receive lesser value
NEW YORK, June 12 - The Trump administration on Friday will propose that renewable fuel trading credits generated through producing fuel via imported feedstocks will receive a lesser value, as part of a proposal on U.S. biofuel blending requirements, two sources told Reuters. Under the U.S. Renewable Fuel Standard, refiners are required to blend massive volumes of biofuels into the nation's fuel supply or purchase credits, called RINs, from those that do.
Reuters
32 minutes ago
- Reuters
Ford struggles with supply of rare earth magnets, CEO tells Bloomberg News
June 13 (Reuters) - Ford Motor Co (F.N), opens new tab is struggling with supplies of rare earth magnets, the automaker's CEO Jim Farley told Bloomberg News in an interview on Friday. China, which controls more than 90% of global rare earth processing capacity, imposed new export licensing rules in April, tightening supply to Western manufacturers of everything from cars and fighter jets to household appliances. Automakers, especially those focused on EVs, are among the largest industrial consumers of rare earth materials. Western countries have been trying to reduce reliance on Chinese rare earths by investing in alternative sources and refining capacity in places like Australia, Canada, and the United States. Ford did not immediately respond to Reuters' request for a comment.
Reuters
an hour ago
- Reuters
Mali hopes Russia partnership will help end raw gold exports
BAMAKO, June 13 (Reuters) - Mali's government will establish a state-controlled gold refinery with Russia's Yadran to boost bullion revenue as West African nations aim for greater resource returns amid rising commodity prices, the country's finance minister said. The new company, SOROMA-SA, will be 62% owned by the Malian state, with the remainder held by Yadran, Economy and Finance Minister Alousseni Sanou said. The refinery, set to be built on a five-hectare site near Bamako's airport, will process 200 metric tons annually, almost quadruple Mali's current output of approximately 50 tons, Sanou said. Mali's National Transition Council approved the shareholding on Thursday, Sanou said, adding the company would assist miners to comply with the revised code. Mali, Africa's second-largest gold producer, has adopted a revised mining code boosting state stakes in mining firms, raising gold royalties, and requiring domestic gold processing, following similar policies in Burkina Faso, Niger and Guinea that rattled western investors as they pivot to Russia and China. Mali's two gold refineries lack certifications, such as by the London Bullion Market Association (LBMA), forcing miners to process gold abroad, according to the Mines Ministry. A senior Mines Ministry official, who requested anonymity, said Yadran would help secure certification, a key obstacle that has prevented the country's existing refineries from accessing global markets. Mali's military leader Assimi Goita will commission the refinery's construction later in June, according to mines ministry spokesperson.
