Oman crude becomes Asia’s top pick as Hormuz risks reshape oil trade

Asian refiners are rapidly shifting their crude procurement strategies toward Oman Export Blend, as the grade's ability to bypass the Strait of Hormuz entirely makes it the most attractive medium-sour option in a region grappling with persistent supply disruptions.

A Logistical Advantage Reshapes the Market

According to S&P Global Platts ↗ 3.36%, reporting from the APPEC 2026 conference in Singapore last week, Oman Export Blend is emerging as Asia's preferred medium-sour grade from the Persian Gulf region. The grade's appeal is straightforward: Omani exports sail directly into the Indian Ocean en route to East Asia, bypassing the Strait of Hormuz, which has been largely blocked to commercial shipping since Iran closed the waterway in late February after the U.S. and Israel launched an air campaign against Tehran.indexbox+1

Operations managers at refineries in Japan, Malaysia, India, and South Korea told Platts that the logistical advantage now outweighs traditional feedstock economics. A Chiba-based refinery operations manager said procurement approaches have shifted from optimizing refining margins to ensuring "guaranteed, on-time deliveries".indexbox

Saudi Pipeline Shutdown Accelerates the Shift

The trend intensified after drone attacks launched from Iraqi territory on September 11 forced Saudi Arabia to shut down its 750-mile East-West pipeline, which had become Riyadh's vital alternative route to bypass Hormuz and ship crude from the Red Sea port of Yanbu. Repairs could take three to five weeks, according to two regional officials who spoke to The Associated Press, though U.S. Energy Secretary Chris Wright said the pipeline could resume within days.oilprice+2

Some Japanese refiners rushed to purchase Oman crude this week for earlier loadings following the Saudi shutdown, traders told Bloomberg. Meanwhile, Saudi Arabia has turned to selling millions of barrels in the spot market for pickup via ship-to-ship transfers in the Gulf of Oman, just outside the Strait of Hormuz.oilprice+1

Surging Demand and Widening Premiums

South Korea's purchases illustrate the scale of the shift. Data from state-run Korea National Oil Corp showed the country imported 12.4 million barrels of Omani crude during the first seven months of 2026, more than triple the 3.97 million barrels received in the same period a year earlier. An Ulsan-based refinery source credited South Korean government trade diplomacy for securing additional Omani volumes.indexbox

Since April, Taiwan, India, and South Korea have become consistent buyers of the grade, with Singapore and Vietnam taking smaller monthly volumes. A substantial price premium has emerged for crude avoiding the Strait of Hormuz. On Wednesday, Oman crude climbed 2.8% to settle at $132.09 a barrel, while Brent crude fell 1.55% to $107.06 — a spread that underscores the market's valuation of supply security over barrel economics.indexbox

Tanker traffic through Hormuz remained well below pre-crisis levels, with only four commodity vessels detected transiting the chokepoint on Thursday, compared with a 10-day average of 16 ships daily, according to Kpler data cited by Reuters Thomson Reuters Corporation ↗ 6.40%.oilprice