The gauge effectively shows the price difference between European and Middle East crude. It matters because a narrower EFS means that grades priced against Brent — including from the North Sea, Mediterranean and West Africa — become more appealing to refineries in Asia.
Crude from the Atlantic basin has become more attractive to Asian buyers after a closely-watched spread narrowed sharply, opening up an opportunity for bigger flows east.
The premium of Brent futures to Dubai crude swaps, also known as Brent-Dubai exchange of futures for swaps, or EFS, dropped to almost zero on Wednesday. That’s down from a peak of about US$4 ($5.13) a barrel in June, according to PVM Oil Associates data.
