Dubai Crude Trades Over 20% Higher Than Brent Amid Supply Shock

The gap between Dubai crude and Brent crude has widened sharply, with Dubai crude rising to around $130 per barrel, reflecting growing stress in global oil markets and supply disruptions linked to the Middle East conflict.

Recent data compiled by Topline Securities show that Dubai crude is now trading at a premium of over 20 percent compared to Brent, a rare reversal of typical pricing dynamics where Brent usually commands a higher value.

This divergence is largely driven by supply-side disruptions in the Gulf region, particularly around the Strait of Hormuz, which handles nearly 20 percent of global oil flows and has seen severe disruptions due to ongoing conflict.

Middle Eastern crude benchmarks, including Dubai, have surged to record highs due to the limited availability of physical cargo, with traders paying a premium to secure immediate supply.

At the same time, Brent prices, which are more reflective of futures markets and Atlantic basin supply, have risen but remain relatively lower, creating an unusual spread between physical and paper oil markets.

Recent reports from Reuters also indicated that some Asian buyers are shifting pricing benchmarks away from Dubai crude due to its sharp rise, while others are seeking alternative supply sources to manage rising costs. If disruptions persist, the premium on Middle Eastern crude could remain elevated, adding further inflationary pressure on energy-importing economies and increasing volatility across global commodity markets.