Asian Oil Buying Spree Sends Dubai Crude Toward $100
Stronger appetite for Middle Eastern crude grades from China and India has added upward pressure on prices for these grades, pushing the Dubai futures close to $100 per barrel, Bloomberg reported today, citing unnamed traders. Demand for Middle Eastern oil is especially strong from refining majors such as Indian Oil Corp. and PetroChina, as well as refiners in South Korea and Japan, the report…
A surge in Middle Eastern oil purchases from China and India has driven Dubai crude prices closer to the $100 mark, Bloomberg reported on Tuesday, citing unnamed sources. Refineries run by Indian Oil Corp. and PetroChina, along with those in South Korea and Japan, are among the key buyers, the report said. This demand persists despite strained U.S.-Iran relations, with Saudi Arabia's oil shipments hitting their lowest level since 2017, according to data from Kpler and Vortexa.
Bjarne Sellevoll Larsen, a senior analyst at Saxo Bank, noted that some deliveries might face delays between August and October. At the time of writing, the UAE's Murban futures were priced at $106.10 per barrel, while DME Oman, the Middle East sour crude benchmark for Asia, stood at $99.18 per barrel. Demand has risen despite reduced Strait of Hormuz exports, with an average daily volume of 6 to 8 million barrels over the past week.
Asian buyers are also increasing purchases from other sources, including Brazil, Canada, and Argentina, as well as Russian crude. Brent crude and West Texas Intermediate prices fell yesterday, reflecting uncertainty about Middle East developments amidst ongoing U.S.-Iran strikes. Some analysts believe the price drop is due to a temporary cease in the attacks, despite President Trump's claim that the U.S. is ready to strike again if necessary.
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