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Signaling an end to the immediate supply crunch, the futures curve structure for Dubai and Murban crudes flipped to contango for the first time since the war began on February 28. According to reports, Middle East benchmark grades slumped this week as optimism grew regarding a potential U.S.-Iran deal that could restore global supplies. This shift, where future deliveries trade at a premium to prompt prices, reflects a well-supplied physical market compared to previous months.
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Sign InThe decline in spot premiums coincides with a stabilization in global inflationary pressures, as U.S. CPI data released on June 10, 2026, showed annual inflation holding at 4.2%, meeting market expectations. Compared to Brent crude's recent volatility, the shift in Dubai and Murban suggests easing competition for Asian cargoes, particularly as Chinese Producer Price Index (PPI) data showed a steady 3.9% growth per market data on June 10, indicating cooling industrial cost pressures.
Traders should closely watch the OPEC Monthly Report scheduled for June 11, 2026, for further insights into the global supply-demand balance. Additionally, the market remains sensitive to U.S. inventory data; the EIA Weekly Petroleum Report on June 10, 2026, showed a significant draw of 7.228 million barrels. Current price levels for Middle Eastern benchmarks are expected to remain under pressure as long as the contango structure persists in the futures market.