Middle East oil hits record highs as war disrupts supply
Middle Eastern crude benchmarks have surged to record levels, making the region’s oil the most expensive globally, even as trading activity declines amid the U.S. and Israeli war on Iran.
Some market participants argue the benchmarks are losing relevance due to severe supply disruptions, News.Az reports, citing Reuters.
The sharp rise in benchmark prices—used to value millions of barrels of Middle Eastern crude exported to Asia—is increasing costs for Asian refiners, prompting them to seek alternative supplies or scale back output in the coming months.
Cash Dubai was assessed at a record $153.25 per barrel on Monday for May-loading cargoes, according to S&P Global Platts, exceeding Brent futures’ previous all-time high of $147.50 set in 2008.
Dubai’s premium to swaps climbed to $56.01 per barrel, representing roughly one-third of its total value, a significant jump from an average of just 90 cents in February, Reuters data showed.
Oman crude futures also reached a record high of $147.79 per barrel, with their premium to Dubai swaps rising to $50.57 per barrel—well above February’s average of 75 cents.
Market sources noted that Dubai prices appear distorted due to the large gap with Murban futures, which settled at $111.76 per barrel on Monday.
Meanwhile, Middle Eastern crude exports to Asia dropped sharply to 11.665 million barrels per day in March, down from nearly 19 million bpd in February and about 32% lower than levels seen in March 2025, according to Kpler. The decline is largely attributed to shipping disruptions through the Strait of Hormuz.
In response, several Asian refiners have already reduced their operating rates.
News.Az
By Nijat Babayev
