Brent crude's premium to Dubai swaps jumped nearly $1 to rise above $5 a barrel on Monday, the highest since 2013, Refinitiv data showed, Trend reports with reference to Reuters.
The widening of the price spread between the two benchmarks is likely to drive up Asia's demand for Middle East and Russian grades priced off Dubai while curbing refiners' appetite for Brent-linked crude from the Atlantic Basin.
The front month Brent/Dubai Exchange of Futures for Swaps climbed to $5.24 a barrel at Monday's market close, up 91 cents from Friday, according to Refinitiv, boosted by stronger inter-month spreads for Brent.
Expectations of stronger demand for Dubai-linked grades have also pushed benchmarks Dubai, Oman and Murban higher on Monday, first day of trading this month.
Cash Dubai's premium to swaps was assessed at $3.40 a barrel, up from an average of $2.31 last month while DME Oman's premium to Dubai swaps rose to $3.60 from an average of $2.30 in October.
ICE Murban crude futures' premium to Dubai swaps jumped to $5.60 a barrel, rising from an average of $3.45 a barrel last month.
Asia will be trading crude cargoes loading in January this month.