Benchmark Dubai shows unique strength amid bearish crude landscape

Singapore — Asian benchmark Dubai crude continued to remain firmly backwardated, despite a rout in global oil prices that have pushed other major price markers such as ICE Brent and NYMEX WTI deep into a contango.

Traders say Dubai is underpinned by strong Asian demand and firm refining margins for residual fuels, while the possibility of an OPEC-led production cut is providing additional support.

“Demand from Asia remains good, particularly from China and India, for the Middle Eastern grades. This is possibly keeping the Dubai structure backwardated,” Stephen Innes, head of trading APAC at OANDA, said.

S&P Global Platts

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes