CommoditiesMedium•3 November 2026•
1 min read
Dubai Oil Benchmark Shifts to Contango as Middle East Supply Rises
Key Facts
1The Dubai oil benchmark curve shifted into contango for the first time since July as Middle East supply began exceeding demand.
2Physical oil flows have risen over the past two months as Gulf producers accelerated shipping through the Strait of Hormuz.
The Dubai oil benchmark curve shifted into contango for the first time since July as Middle East supply began exceeding demand. Oilprice.com reported that physical oil flows have risen over the past two months as Gulf producers accelerated shipping through the Strait of Hormuz.
This shift to a contango structure, where near-term prices are lower than future prices, indicates a well-supplied physical market. Increased physical flows, facilitated by ship-to-ship transfers and stable transit through the strait, have led to supply outstripping immediate demand, putting downward pressure on spot prices relative to later contracts.