Middle Eastern Crude Prices Soar as India and China Increase Purchases

Refiners in India and China have increased their purchases of Middle Eastern crude oil in recent days, driving prices up to near $100 a barrel. The Dubai benchmark futures price has surged to its highest level since May 2026, while physical premiums for Oman and Murban crude have also risen sharply.

The buying spree is being led by Indian Oil Corp. and PetroChina, which have been aggressively purchasing Persian Gulf crude on the spot market. Traders say IOC has accelerated its spot purchases of Middle Eastern crude, while PetroChina recently bought millions of barrels from Saudi Arabia, Iraq, and the UAE.

US-Iran tensions and tanker attacks in the Strait of Hormuz are contributing to the tight supply situation, with refiners worried about reliable access to Persian Gulf crude. The recent attacks may have cut into the estimated 6-8 million barrels per day of Middle Eastern crude that flows through the strait.

South Korean and Japanese buyers are also competing for Persian Gulf barrels, adding to the demand pressure on a market that is already stretched thin. Chinese buyers have been sourcing oil from Brazil, Canada, and Argentina due to tighter access to Iranian crude.