Middle East Crude Prices Soar on India-China Buying Spree

Oil prices in the Middle East are rising due to increased demand from major oil importers India and China. Refiners in both countries are aggressively bidding for Persian Gulf barrels, pushing up prices. Benchmark Dubai futures have reached nearly $100 a barrel, their highest since May, while physical premiums for Oman and Murban crude have surged.

New Delhi-backed refiners, led by Indian Oil Corp (IOC), have accelerated purchases of Middle Eastern crude in recent days. IOC and Reliance Industries Ltd, another major private refiner, may follow suit with additional buying, according to traders who asked not to be named due to the sensitivity of the matter.

The increased demand has put pressure on Middle Eastern crude prices, with Abu Dhabi's Murban commanding a premium of over $30 a barrel to Dubai for delivery to East Asia. This is at least $10 more than the cost of delivering West Texas Intermediate oil from the US.