Asian markets rally on lower yields and easing crude; BOJ lifts benchmark rate

Oman crude oil is gaining popularity among Asian refiners as they prioritize supply security amid shipping risks through the Strait of Hormuz. Oman Export Blend is increasingly becoming Asia's preferred medium-sour crude in the Persian Gulf market due to its minimal exposure to logistical risks stemming from the US-Iran conflict.

Refinery industry sources attending APPEC 2026 in Singapore revealed that Oman's crude exports can directly access the Indian Ocean for voyages to the Far East, bypassing the Strait of Hormuz. This advantage makes Oman crude highly attractive to Asian end-users seeking to secure adequate medium-sour grades. China has traditionally been the primary buyer of Oman crude; however, competition for medium-sour grades is expected to intensify as several regional refiners aim to secure larger term volumes.

South Korea and Japan, who previously favored Iraqi Basrah Medium and Kuwait Export Blend, are now recognizing the value of Omani supply due to its logistical advantages, product quality, and reduced exposure to shipping risks. The Chiba-based refinery operations manager and Ulsan-based refinery source emphasized that feedstock economics and refining margins have become more crucial factors in crude-slate decisions post-crisis.

South Korean refiners increased their purchases of Oman crude this year, partially offsetting the decline in Iraqi Basrah Medium intake. South Korea imported 12.4 million barrels of Oman crude in the first seven months of 2026, a significant threefold increase compared to the 3.97 million barrels imported during the same period in 2025.

Taiwan, India, and South Korea have emerged as regular buyers of Oman crude since April, while Singapore and Vietnam have also been purchasing smaller volumes each month. Oman crude extended its gains on Wednesday, rising by 2.8% to settle at $132.09 a barrel, while Brent crude fell by 1.55% to $107.06 a barrel, and WTI dropped by 2.46% to $103.23.

The price gap between Gulf crude and oil outside the Strait of Hormuz has widened, with oil avoiding the waterway commanding extraordinary premiums.