With large amounts of Middle Eastern oil returning to the market, North Sea crude oil prices weaken

Golden Ten Data reported on June 23 that as large quantities of Middle Eastern oil flood into Europe, key indicators in the North Sea crude market are showing signs of weakness, intensifying market concerns about an oversupply following the reopening of the Strait of Hormuz. In S&P Global Commodity Insights' Platts pricing window, Forties crude—one of the six oil grades underlying the global Dated Brent benchmark—fell to its lowest level in two years on Monday. Another key component of the Dated Brent benchmark, WTI Midland crude, dropped to a three-month low. The weakening of the North Sea benchmark follows a surge in Middle Eastern exports, with a huge supply flowing back into the global oil market. The Dubai benchmark has already shown softness, with its spread widening further to a futures premium structure, which typically signals ample supply. Traders said that although shipping traffic through the Strait of Hormuz has not fully returned to normal, concerns about oversupply are mounting.