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.
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