A sharp decline in spot market prices for Murban crude has triggered record demand from Asian buyers, Reuters reported, citing trade data showing 10 million barrels sold on an S&P Global Platts market-of-close basis this month.
Murban, a light crude produced by the United Arab Emirates (UAE), is the country’s main export grade and accounts for around two-thirds of Adnoc’s total oil output. Its price also serves as a benchmark for up to 14 million barrels of daily oil exports to Asia.
Analysts say recent factors such as increased UAE supply, outages at Japanese refineries, and maintenance at Saudi Arabia’s Petro Rabigh plant have contributed to oversupply in light crude grades across Asia. However, Murban has remained in high demand as its price premium dropped to a six-month low.
“Asia has been oversupplied with light grades recently,” Energy Aspects analyst Richard Jones told Reuters. “But the reduced Murban premium has kept demand strong.”
Adnoc expects Murban production to exceed 1.7 million barrels per day in June, July, and August. Reuters also cited one source suggesting output could surpass 2 million barrels daily in July, adding more supply pressure and keeping prices down.
Earlier in May, Bloomberg reported that Chinese independent refiners had purchased two Murban cargoes. This marks a shift away from Iranian crude amid U.S. sanctions, which have targeted Chinese buyers in recent months. Murban was trading at a $5 premium over ICE Brent for August delivery at the time.
In March and April, the U.S. sanctioned two smaller Chinese refiners for handling Iranian oil, as part of former President Donald Trump’s “maximum pressure” campaign aimed at curbing Iran’s nuclear ambitions. This move has made sanctioned Iranian oil riskier to buy, increasing interest in alternative supplies like Murban.
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