DME futures become erratic

摘要

September DME Oman futures briefly rose to a rare premium to Ice Brent crude futures, despite Oman crude being heavier and sourer than its Atlantic basin counterpart. DME September Oman was at close to parity to Dubai swaps in early July, and at a 4/bl discount to Ice Brent futures. But DME Oman surged relative to other benchmarks in late July, as firms covering short positions struggled to find counterparties, forcing bids up to entice sellers to release cargoes (see graph).