Physical crude oil cargoes are selling at steep discounts around the world, changing trade flows as markets come under pressure from fast-rising Middle Eastern supply with Iran set to boost sales following
Physical crude oil cargoes are selling at steep discounts around the world, changing trade flows as markets come under pressure from fast-rising Middle Eastern supply with Iran set to boost sales following a temporary reprieve from U.S. sanctions.
The discounts, the biggest in years in some cases, follow the signing of a 60-day interim deal between the U.S. and Iran aimed at ending the war that began on February 28. The agreement has allowed some shipping to resume in the Strait of Hormuz, through which a fifth of global oil and liquefied natural gas shipments moved before the conflict.
Tehran is also ramping up oil exports, seeking sales beyond China, after Washington temporarily lifted sanctions as part of the deal.
The release of cargoes stranded inside the Gulf and a wave of crude offers from Abu Dhabi National Oil Co, Kuwait Petroleum Corp and Iraq's SOMO have also boosted prompt supply and depressed Middle East benchmarks Dubai, Oman and Murban to discounts. Asian refiners, which typically buy crude two months in advance, have already booked cargoes for delivery up to August.
"Refineries in the East have already been well supplied for the next two months and have no need for
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