Key crude prices in the Middle East have dropped to their weakest level against the Brent benchmark in two months, amidst rising output and tepid demand. The premium of Abu Dhabi’s Murban grade over Brent has narrowed to its lowest level since early October, indicating oversupply concerns.

In Dubai, the Brent-Dubai EFS has widened to its widest in seven weeks, reflecting ample global supply. Saudi Arabia slashed crude prices bound for Asia to the lowest premium in five years. The market anticipates an oversupply year, with investment banks expecting Brent prices to average below $60 per barrel next year.

Saudi Arabia’s price cut was expected due to increased OPEC+ output. Banks predict WTI prices will be even lower. ING’s Warren Patterson foresees a growing surplus in the oil market in 2026. Non-OPEC supply is also projected to rise despite this year’s price weakness.

Read more at Yahoo Finance: Middle East Crude Prices Sink to Two-Month Low Against Brent