MUSCAT, MAR 11
TotalEnergies’ trading arm Totsa has sold Oman crude to ExxonMobil at a record premium, highlighting tightening supply conditions and heightened volatility in global oil markets amidst escalating geopolitical tensions in the Middle East.
According to traders, Totsa — the Asian trading unit of TotalEnergies — sold April-loading Oman crude to ExxonMobil at a premium of more than $20 per barrel above Dubai benchmark quotes, marking a multi-year high for the grade.
The sale follows a tender issued by Totsa offering up to two million barrels of Oman crude scheduled to load between April 1 and April 30 from Mina Al Fahal, Oman’s principal crude export terminal. The tender closed earlier this week.
Market participants said the transaction reflects strong demand for Middle Eastern crude, particularly grades such as Oman crude that are widely used as benchmarks for pricing oil exports to Asian markets.
The deal is also notable as it represents TotalEnergies’ second tender-based sale of Middle Eastern crude since the conflict involving Iran disrupted regional energy flows and raised concerns over supply security in the Gulf.
Last week, the company sold one million barrels of Oman crude for April loading to ExxonMobil at a premium of $7 per barrel to Dubai quotes, indicating how sharply market conditions have tightened within a short period.
Traders noted that spot premiums for Oman crude surged to $30.94 per barrel on Monday, the highest level recorded in Reuters data since 2018. The surge reflects heightened concerns about shipping disruptions and reduced output from producers in the region.
The Gulf remains a critical artery for global energy trade, with roughly a fifth of the world’s oil shipments passing through the Strait of Hormuz. Any disruption to shipping routes in the region tends to have an immediate impact on market sentiment and pricing.
Meanwhile, official figures showed that the price of Omani crude oil for May delivery reached $118.73 per barrel on Wednesday, representing an increase of $3.88 compared with Tuesday’s price of $114.85.
Despite the recent surge, data also showed that the average monthly price of Omani crude for March delivery stood at $62.17 per barrel, reflecting an increase of 8 cents compared with the February delivery average.
Market analysts say the recent transactions underscore the continued strategic importance of Oman crude in regional and global oil trade, particularly during periods of heightened geopolitical uncertainty.
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