The Dubai futures contract moved into contango this month, for the first time in three years, with spot-traded medium sour grades across the Middle East continuing their decline amidst increasing availability and slackening demand.
Brent crude has broken out of its range after the announcement that Saudi Arabia and Russia will keep output cuts in place until the end of 2023, but the stronger dollar keeps a lid on the rally
As Middle Eastern producers were thinking of formula prices for their cargoes loading in June, they did not necessarily see the scope of the macroeconomic headwinds that they were up against