The Middle East crude market strengthened on Monday with the front-month Dubai curve at its steepest backwardation in nine months while DME Oman climbed to its highest in more than six months on expectations of strong demand in Asia.
Asian refiners are expected to ramp up output on strong refining margins and as some facilities return from maintenance, traders said on Monday. The fourth quarter is also the peak demand season for heating oil as winter arrives in the Northern Hemisphere.
The October-November spread for Dubai swaps widened to 45 cents in backwardation, against a previous high of 50 cents on Dec. 16, 2010, Reuters data showed.
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