Asian Oil Buying Spree Sends Dubai Crude Toward $100

A surge in demand for Middle Eastern crude grades from China and India has pushed Dubai futures prices close to $100 per barrel, according to Bloomberg. This increase in appetite is driven by refining majors such as Indian Oil Corp. and PetroChina, as well as refiners in South Korea and Japan. Despite tensions between the United States and Iran, the UAE's oil exports have hit their lowest level since 2017, with Saudi Arabia's crude shipments contributing to the decline. The Middle East sour crude benchmark for Asia (DME Oman) is currently trading at $99.18 per barrel.

However, some cargoes may face delays due to reduced oil flow through the Strait of Hormuz, with volumes averaging between 6 and 8 million barrels daily over the past week. Meanwhile, Asian buyers are diversifying their purchases, with China and India also increasing their buys of Russian crude. Brent crude and West Texas Intermediate prices have dipped, reflecting uncertainty about developments in the Middle East, even as a potential pause in the US-Iran strikes continues.

This dip in prices may be due to traders expecting the strikes to be paused for an extended period, despite President Trump's statement that the US is prepared to launch another strike at any time.