Dubai monthly average at 14-year high in June, 1H 2022 average above $100/b

30 Jun 2022

Quantum Commodity Intelligence - The June monthly average price for benchmark Middle East Dubai crude gained nearly 5% versus the previous month, according to Quantum data, as oil markets responded to fears of a global supply/demand imbalance and record refining margins.

Quantum's monthly average price for front-month August-loading Dubai crude was $113.24/b, up from the July-loading average of $108.13/b, or a gain of 4.7%, and the highest since 2008 when July averaged more than $130/b.

The previous high since 2008 was in March of this year at $110.89/b, which coincided with Russia's invasion of Ukraine.

The highest assessment of $118.58/b was registered on 18 June, while the monthly low of $106.45/b came on 23 June.

Meanwhile, front-month Dubai prices averaged $102.17 over the first half of 2022, compared to $74.97 in the 2H of last year and around $63.50/b in 1H 2021, according to Quantum and broker data.

Prices remained comfortably above $100/b throughout June, underpinned by fresh record cracks in distillates, gasoline and marine fuel, while renewed concerns over OPEC spare capacity saw Dubai finish the month on a firm footing.

The key M1/M3 Dubai cash spread, closely monitored by Saudi Aramco and other Middle East National Oil Companies (NOCs), averaged a $7.54/b in June compared to $5.13/b in May, paving the way for further steep hikes in Official Selling Prices (OSPs) for August-loading barrels.

Asia cash August Brent averaged $117.28/b over the month, up 4.26% from July's $112.48/b, while the Brent/Dubai cash spread averaged $4.04/b compared to $4.25/b in May, having narrowed sharply in the final week.

For a full Dubai and crude oil pricing history, visit Quantum's pricing pages.