Differentials in the Middle East crude market were under intense pressure on Tuesday from rising Saudi Arabian output, which sent the discount of Dubai crude to Brent to its widest level in 6-½ years.
The Brent/Dubai Exchange of Futures for Swaps (EFS) jumped 30 cents to $8 a barrel by 0830 GMT, Reuters data showed, after reaching $8.40 earlier on Tuesday. Some Asian traders said it may reach $9 in coming days.
The spread is the widest since December 2004, when a glut of heavy sour crude depressed the relative value of exports from producers such as Saudi Arabia, Kuwait, the United Arab Emirates, Iran, Iraq, Qatar, Venezuela and non-OPEC Mexico.
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