Brent trades near $72 while refined products reflect $95-$100 crude levels, signaling prolonged market dislocation.
Middle Eastern producers are heavily discounting crude to reduce stockpiles built up during regional conflicts, TotalEnergies CEO Patrick Pouyanné said. The move highlights a split in the oil market, with crude prices falling while refined products like gasoline and diesel remain tight.
Brent crude is trading around $72 a barrel, but refined product prices imply crude at $95 to $100. Shipping disruptions in the Strait of Hormuz are exacerbating the supply imbalance, keeping downstream costs elevated despite the crude glut.
Pouyanné expects the market to rebalance in three to four months, suggesting prolonged pressure on crude prices and sustained refining margins. The gap adds complexity for traders reconciling weak benchmarks with sticky downstream costs.