Brent crude futures flipped to a discount against Dubai swaps on Wednesday, the first time since November 2023, LSEG data showed, underscoring the strength of Middle East sour oil versus the global sweet crude benchmark.
The Brent-Dubai Exchange of Futures for Swaps (EFS) was assessed at minus 2 cents a barrel at Wednesday's market close at 0430 GMT, LSEG data showed.
The discount has since widened further to 14 cents a barrel, two trade sources said. Sweet, or low-sulphur oil, is typically more expensive than those with higher sulphur content as they are easier to process.
Brent's weakness against Dubai has opened up arbitrage opportunities for sweet crude produced in the Atlantic Basin to head to Asia, another trader said.
The price spreads between dated Brent and Dubai are also in discounts for April to June contracts, he added.
