Global physical crude markets mired in discounts as Middle East ramps up supply
“Refineries in the East have already been well supplied for the next two months and have no need for the incremental barrels, leading to a very weak market and Dubai spreads in contango.” — June Goh, Senior Oil Analyst at Sparta Commodities
- Expert: June Goh (Senior Oil Analyst, Sparta)
- Publication: Reuters
- Market Focus: Crude Oil, Trade Flows, Regional Arbitrage
- Geographies: Asia, Europe, Middle East, West Africa, Atlantic Basin
In a recent analysis for Reuters, Sparta’s Senior Oil Analyst, June Goh, explains why global crude markets are drowning in discounts despite Middle Eastern supply surges: Asian refiners have already booked cargoes through August and simply have no demand for incremental barrels. Dubai spreads have collapsed into steep contango—cash Dubai down to a 27-cent discount from a $60 premium just three months earlier. This has flipped traditional trade flows, pushing Middle Eastern and Atlantic Basin crude toward Europe as the only clearing point, while West African grades hit six-year lows. Traders should monitor regional arbitrage spreads closely as Asian demand weakness could persist well into Q3.
Read June Goh’s full commentary in Reuters
About the Author
June Goh | Senior Oil Analyst, Sparta Commodities
June is a senior oil market analyst at Sparta specialising in global crude trade flows and refining economics across Asia and Europe. Her analysis is regularly cited by Bloomberg, the Financial Times, and Reuters. With a significant following in the energy community on X (@JuneGoh_Sparta), June’s insights are a staple for institutional traders navigating regional market shifts.
Connect: LinkedIn / X
About Sparta
Sparta is a live, market intelligence and forecasting platform that enables oil traders, refiners, banks, hedge funds and wholesalers to have access to real-time and global actionable insights to capture market opportunities before others.
To find out how Sparta can allow you to make smarter trading decisions, faster, contact us for a demonstration at sales@spartacommodites.com
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