Oil market braced for glut as Asian refiners look further afield for crude
The very narrow Brent-Dubai spread is allowing US and West African crudes to flow into Asia competitively, said June Goh, senior oil market analyst at Sparta Commodities. “WTI in particular is pricing very cheaply into the Asia, opening new markets into Pakistan and Vietnam.”
Bloomberg, August 21, 2025 – Asian refiners are sourcing crude beyond the Middle East, buying from the US, Brazil, and Nigeria, but the market braces for an oversupply. OPEC+ restorations and rising production from non-OPEC countries, combined with muted demand growth, have pushed Brent’s premium to Dubai to the lowest since April. Sparta’s June Goh noted that narrow spreads are allowing US and West African crudes to flow into Asia competitively, while analysts warn that weak timespreads and rising inventories signal a soft market through early 2026.
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