Dubai sets October crude oil spread at higher than Omani crude
Date
7/22/2024 5:04:29 AM
(MENAFN) Dubai's Department of petroleum Affairs announced on Monday that the official price differential for crude oil in the emirate for October will be set at a premium of USD0.10 per barrel above Oman crude. This adjustment in pricing strategy marks a notable shift for Dubai as it establishes the cost framework for its oil exports. The price differential will be applied to the average daily settlements of Oman crude contracts for October, with final calculations being made at the end of August.
The determination of this premium reflects Dubai’s ongoing efforts to position its crude oil competitively in the global market. The official selling price for Dubai crude for October-loading shipments will be directly influenced by this premium, which is determined based on the comparative value with Oman crude. This approach aims to align Dubai's pricing with market dynamics and maintain its appeal to buyers.
The adjustment comes as part of Dubai's broader strategy to manage its oil pricing and remain competitive amidst fluctuating global oil markets. By setting a clear differential, Dubai ensures transparency in its pricing strategy and supports market stability. The finalized price at the end of August will provide clarity for traders and buyers planning for October shipments, solidifying Dubai's role in the international crude oil market.
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