Dubai Benchmark Pressured by Hormuz Disruptions
The Iran war and effective closure of the Strait of Hormuz has stranded the majority of Middle East oil exports, putting the region’s key oil benchmark under a lot of pressure. The Dubai crude benchmark--a vital marker for Middle Eastern oil flowing to Asia--used to price ~18 million barrels per day primarily based on crude oil grades from the United Arab Emirates (specifically Upper Zakum and Murban), Oman and Qatar. According to Reuters, three of the five crude grades that normally underpin the benchmark are now effectively sidelined…