Global benchmark Brent crude oil is trading at an unusually low price compared to Middle Eastern crude oil, driven by President Trump's crackdown on Russian oil supplies and market expectations of crude oil oversupply later this year. Data indicates that Brent crude futures are trading 3 cents per barrel below Dubai crude, marking the first occurrence of this situation since April.

Traders anticipate that the market will be flooded with substantial amounts of crude oil in the coming months. Both OPEC+ member and non-member countries are increasing crude oil production, putting pressure on Brent futures while also weakening the time spread, a key indicator of market health.

Meanwhile, demand for Middle Eastern crude oil varieties has received a temporary boost due to a buying spree by Indian refiners. This purchasing wave is connected to pressure Trump has applied on India regarding its purchases of Russian crude oil.