Tokyo Reverses Crisis-Era Benchmark Shift as Dubai-Brent Spread Narrows

Japan’s industry ministry will officially switch the benchmark for calculating gasoline price subsidies back to Dubai crude prices from Brent crude, effective June 4, after Dubai crude prices stabilized and the gap between Dubai and Brent has narrowed, allowing for more accurate subsidy calculations. Earlier in the spring, the Japanese government briefly shifted the benchmark to Brent crude in an attempt to limit surging gasoline prices shortly after the Iran war begun. However, oil price volatility has now cooled off considerably, with Dubai…