This supply crunch is reflected in rising oil prices across the region. Traders in high-sulfur crude markets note a premium for Qatar's Shahden crude for February loading, exceeding the January premium 70 cents by about $1 per barrel. Prices for Oman and UAE Murban crude have also increased relative to the Dubai benchmark over the past month.
The higher prices signal a shortage of Gulf oil for Asian buyers, aligning with the UAE's intention to curtail sales as part of the OPEC+ alliance's efforts to adhere to production targets. Furthermore, increased scrutiny and sanctions imposed by the US and Europe on Iranian oil exports have exacerbated supply constraints