Middle East Physical Oil Off to Strong Start on Demand Revival
- Persian Gulf crude for loading in August priced at high levels
- Infections in India slow; U.S. and European recovery watched
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The physical market for Middle Eastern crude started the month strongly, backed by expectations for robust Asian demand and the likelihood of less supply leaving the U.S. and Europe due to the recovery in those regions.
Premiums for August-loading Oman oil surged against the region’s main pricing benchmark and timespreads for Dubai crude rallied. While Covid-19 continues to plague countries such as India, falling infection rates and an easing of lockdowns are setting up even the worst-hit Asian nation for a rebound.