UNITED STATES – Global oil benchmarks dropped, with November Brent crude futures sliding USD 2.92 (or 2.7%) to end at USD105.83 a barrel on the London ICE Futures Exchange. The price drop was principally triggered by reports that Saudi Arabia has begun offering ship-to-ship crude loadings off Oman’s Sohar port to mitigate supply delays caused by pipeline strikes in the Red Sea area. While alternate export arrangements alleviated initial concerns about rising supply shortages, crude benchmarks remain considerably above USD100 per barrel due to continued regional transit difficulties. This continuing high-price environment makes virgin petroleum feedstocks more expensive for Southeast Asian industrial facilities, emphasising the economic benefits of employing locally recovered Recycled Fuel Oil (RFO) and Re-Refined Base Oil (RRBO) as price-stable energy hedges.
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(Source: The Business Times)