Muscat – Oman crude oil is gaining favour among Asian refiners as concerns over shipping risks through the Strait of Hormuz prompt buyers to place greater emphasis on delivery security.

‘Oman Export Blend is rapidly becoming Asia’s preferred medium-sour crude in the Persian Gulf market, owing to its limited exposure to logistical risks stemming from the US-Iran conflict, prompting some refiners to plan to secure higher term volumes,’ S&P Global Platts reported, quoting refinery industry sources who attended APPEC 2026 in Singapore last week.

Refinery operations and logistics managers from Japan, Malaysia, India and South Korea told Platts that Oman’s crude exports have direct access to the Indian Ocean for voyages to the Far East without the need to pass through the Strait of Hormuz. This gives Oman crude a significant advantage for Asian end-users seeking to secure adequate volumes of medium-sour grades.

China has been the dominant buyer of Oman crude. However, competition for the medium-sour grade is likely to intensify among other Asian buyers as several regional refiners seek to secure larger term volumes, according to the S&P Global Platts report.

South Korea and Japan, Asia’s third- and fourth-largest crude importers, typically preferred Iraqi Basrah Medium and Kuwait Export Blend over Oman Export Blend before the Middle East conflict. However, refiners are now seeing much greater value in Omani supply and its logistical advantages, product managers at refiners based in Chiba in Japan and Ulsan in South Korea told Platts.

“Feedstock economics and refining margins dominated crude-slate decisions before the crisis, but procurement strategies have shifted toward prioritising guaranteed, timely deliveries,” a Chiba-based refinery operations manager told Platts.

An Ulsan-based refinery source told Platts, “The government played an important role through trade diplomacy in securing additional Omani crude this year, while South Korean refiners increased their purchases of Oman crude, partly offsetting the decline in Iraqi Basrah Medium intake.”

South Korea imported 12.4mn barrels of Oman crude in the first seven months of 2026, more than a threefold increase from the 3.97mn barrels received during the same period last year, according to the latest data from state-run Korea National Oil Corp.

Other East Asian buyers have also ramped up purchases of Oman crude to replace other Middle Eastern grades now trapped in the Strait of Hormuz. Taiwan, India and South Korea have emerged as regular buyers of the grade since April, while Singapore and Vietnam are also taking smaller volumes each month, according to Platts analysis.

Some refiners in Japan rushed to buy Oman crude this week for earlier loadings after Saudi Arabia shut down its key pipeline bypassing the Strait of Hormuz, traders with knowledge of the purchases told Bloomberg on Wednesday.

Amid an uncertain security situation around the Strait of Hormuz, a huge price gap has also opened between Gulf crude and oil outside the waterway, with crude that avoids the Strait of Hormuz commanding extraordinary premiums.

Oman crude extended its gains on Wednesday, rising 2.8% to settle at $132.09 a barrel, from $128.28 a barrel on Tuesday.

Meanwhile, the price of Brent crude fell 1.55% to $107.06 a barrel on Wednesday, while West Texas Intermediate (WTI) dropped 2.46% to $103.23, as an unexpected increase in US crude inventories eased some concerns over tightening global supplies. The decline came after both benchmarks rallied sharply on Tuesday amid fresh concerns over disruptions to Saudi Arabia’s oil exports.