The official price of Oman Crude for September delivery increased by $10.06 to $82.17 per barrel on Tuesday at the Gulf Mercantile Exchange (GME).
Prompt Middle East spot crude prices rebounded to higher levels compared with future months as escalating attacks between the U.S. and Iran raised concerns about a disruption to oil exports and shipping through the Strait of Hormuz, industry sources said on Tuesday, prompting Asian buyers to seek alternative supplies.
The latest wave of attacks in the five-month-old war started with a U.S. strike on Iran after a ship attack last week.
In recent days, the U.S. renewed strikes, while Tehran attacked Gulf nations and ships passing through the Strait of Hormuz near Oman. Iran attacked two Emirati oil tankers, part of Abu Dhabi National Oil Co's (ADNOC's) fleet to shuttle crude out of the Gulf, for transhipments off the United Arab Emirates and Oman for supplies to customers.
The latest attack on the tankers is likely to deter shippers from entering the Gulf to load oil, with companies that have already chartered vessels closely monitoring the situation, trade and shipping sources said.
It has raised concerns among refiners about whether their cargoes will be delivered in the coming weeks, they added. Prompt monthly spreads for the Middle East benchmark Dubai crude flipped into backwardation of nearly $1 a barrel on Tuesday, traders said, after staying in contango for three weeks.
Prompt month prices are higher than those in future months in a backwardated market, indicating tight supplies, while contango is the opposite.
"There is a possibility that even the UAE will find it difficult to get crude out," said a shipping source in India.
"The war premium will go up significantly high. Who will guarantee the safety of vessels? People will not be willing to go in."
The sources cited in this article declined to be named publicly as they are not authorised to speak to the media.
Global crude supplies had improved over the past three weeks after a flurry of tankers passed through the strait amid an interim peace deal between the U.S. and Iran. However, just five oil, chemical, and dry bulkers transited the strait on Monday, mostly using the Iranian route, ship-tracking data from Kpler showed. There were no oil and liquefied natural gas tankers entering the strait.
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