U.S. Oil Poses Threat to Mideast Sellers With Asia Trading Debut - Bloomberg

U.S. Oil Poses Threat to Mideast Sellers With Asia Trading Debut - Bloomberg:

The rivalry between U.S. and Middle Eastern oil producers has jumped up a notch as American crude makes its way right to the heart of Asia, the world’s most-prized energy market.

Royal Dutch Shell Plc has offered a cargo of U.S. West Texas Intermediate Midland crude that’s priced off the Dubai benchmark in its debut during Asian hours on S&P Global Platts’ widely-referenced trading platform, according to two traders and data compiled by Bloomberg.

Offering the shipment -- scheduled to be delivered to Singapore, or Linggi or Nipah in Malaysia -- against the Middle East’s oil benchmark brings it into direct competition with Gulf grades that’s produced in Saudi Arabia, Abu Dhabi and Qatar. The flow of U.S. oil to Asia, once considered a one-off arbitrage, has expanded in recent years into more frequent shipments.