Swift OPEC+ Cuts Revive Premiums in Asia Physical Oil Market
- Spot differentials of grades from Middle East and Russia climb
- Outlook remains cautious on virus return, ample stored supply
This article is for subscribers only.
Swift and bold output cuts by OPEC and its allies are boosting prices of physical oil barrels in Asia as supply tightens.
Premiums for a wide-ranging variety of crude from Russia’s ESPO, Abu Dhabi’s Upper Zakum and Qatar’s Al-Shaheen have increased significantly in the Asian spot market since OPEC+ started reducing output this month in-line with its pledge to cut almost 10 million barrels a day. Supplies of more sulfurous oil from the Middle East that are favored by a majority of Asian refiners should begin to tighten due to the production curbs.