Basrah Cargo Sold Nearly $10 Below the Physical Dubai Benchmark

Asian refiners who received offers said an Iraqi Basrah Medium cargo sold for nearly $10 a barrel below physical Dubai in a ship-to-ship transfer in the Gulf of Oman, outside the Strait of Hormuz. The discount compares a physical cargo with physical Dubai; Brent is a futures benchmark, so the two prices do not form a direct spread.

Refiners said Basrah had been offered at prices close to Dubai about a month earlier. During the week of Oct. 23, refiners in India, Taiwan and South Korea bought crude or issued tenders for delivery as late as early 2027. Khafji and Qatar’s Al-Shaheen were offered for delivery as late as January 2027. Oman crude’s premium over Dubai had recently fallen to a three-month low.

Brent futures earlier reached $114.72 on Oct. 23, their highest level since May 4. They traded at $113.96 at 4:10 a.m. ET (08:10 UTC) before settling at $116.72 a barrel, up $3.55, or 3.14%. Houthi attacks in Saudi Arabia renewed concerns about supply disruptions.

“The move higher in oil futures is not fundamentally driven at the moment, instead the market is trading supply risks,” said Warren Patterson, head of commodities strategy at ING Groep NV.

By Oct. 1, Middle East crude flows had materially improved as operators used alternative routes and operational changes, while security risks kept freight costs elevated.