Oman crude front-month swaps climbed to their highest since early April, driven by Houthi attacks on Saudi Arabia, persistent Hormuz tensions, and strong Chinese buying, Reuters columnist Ron Bousso noted in a social media post.
Bousso noted that strong purchasing momentum from Chinese buyers is adding further upward pressure on physical crude values, compounding supply concerns across key Middle Eastern export routes as refiners scramble to secure spot cargoes.
"China is buying larger volumes of crude, putting further pressure," Bousso said.
Multiple energy sector facilities in Saudi Arabia's southern region were targeted on Tuesday, resulting in fires at multiple locations and a temporary suspension of select operations, the Saudi Press Agency reported, citing an official source at the Ministry of Energy.
ANZ analysts said that "ongoing constraints on supply come amid signs of rising demand from China, the world's largest importer.
"A rebound in purchases in recent weeks has seen the premium for crude oil from West Africa, Canada and Latin America rise as high as $20/bbl over Brent as Chinese buyers look for alternative sources to feed its refineries," ANZ added.