Dubai crude's premium slump as sellers pile offers onto TotalEnergies

Core Viewpoint - The spot premium for Dubai crude has significantly decreased, dropping over 60% to $17 per barrel, attributed to an increase in sellers and a lack of competitive bidding from TotalEnergies [2][3]. Group 1: Price Movements - The premium for the Middle East benchmark crude fell sharply to approximately $17 per barrel, down from $51.20 per barrel in the previous session, highlighting extreme price volatility due to geopolitical tensions [2]. - Dubai's premium had previously reached an all-time high of about $65 per barrel last week, driven by reduced crude availability following the exclusion of certain grades by S&P Global Platts [4]. Group 2: Market Dynamics - Multiple sellers, including Unipec, Vitol, Shell, and BP, began offering Dubai crude before the trading window opened, leading to a significant drop in prices [3]. - TotalEnergies has been the sole buyer of Middle East crude during the Platts window, purchasing a total of 69 Oman and Murban crude cargoes this month, amounting to 34.5 million barrels [3]. Group 3: Buyer Behavior - The recent price spike has led Asian refiners to avoid spot purchases of Middle East crude, opting instead to source oil from Europe, Africa, and the Americas [5].