China’s Gloomy Economy Makes US, Europe Oil Costly in Asia
- Brent’s premium to Dubai is the largest since early March
- Rapid gains should make Middle Eastern barrels more appealing
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China’s lackluster economy is helping to make oil from the US and Europe increasingly uncompetitive in Asia, where refiners are set to favor supply that’s closer to home.
A closely-watched oil market gauge measuring the premium of Europe’s Brent crude over Dubai — known as Brent-Dubai EFS — rose to its widest since early March in recent days, according to data compiled by Bloomberg. A related swaps contract that normally moves a handful of cents a day has gained almost a dollar in the past two weeks.