Global supply glut expectations are rising, and Brent oil futures prices are unusually lower than Dubai crude oil.
Due to President Trump's crackdown on Russian oil supply, combined with market expectations of an oversupply of oil later this year, the trading price of the global benchmark Brent crude oil is unusually below prices of Middle Eastern oil.
Due to President Trump's crackdown on Russian oil supply, coupled with market expectations of an oversupply of oil later this year, the trading price of global benchmark Brent crude oil is unusually lower than Middle Eastern crude oil prices. Data shows that Brent crude oil futures prices are 3 cents lower than Dubai crude oil, the first time this has happened since April.
Traders expect the market to be flooded with a large amount of oil in the coming months. OPEC+ member countries and non-member countries are increasing oil production, putting pressure on Brent futures, and also weakening the time spread, a measure of market health. At the same time, there has been a temporary boost in demand for Middle Eastern oil varieties, due to a wave of buying by Indian refiners, which is related to the pressure Trump has put on India for buying Russian oil.
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