• The term price for al-shaheen was set by Qatar Energy at a premium of $1.37 per barrel.
• This is the smallest premium since June 2021.
• A smaller gap between Brent and Dubai-linked grades has encouraged Asian customers.

The term price for March al-Shaheen crude was fixed by Qatar Energy at a premium of $1.37 per barrel above Dubai quotes, the smallest premium since June 2021, according to trading sources on Thursday.

This was a decrease from a premium of almost $1.50 per barrel for cargoes loading in February.

Following the sale of two cargoes of March-loading al-Shaheen oil through tenders that ended this week, the term price was chosen.

According to the sources, TotalEnergies (TTEF.PA) and Vitol have most certainly purchased the cargoes scheduled to load on March 1–2 and March 26–27.

The decrease in spot premiums for Middle Eastern oil this month is followed by the reduction in al-Shaheen pricing. A smaller gap between Brent and Dubai-linked grades and lower freight costs have encouraged Asian customers to look for arbitrage cargoes.

Meanwhile, fears about an oversupply are growing, and the flow of Russian crude into Asia is increasing, which is putting pressure on regional oil prices.

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