Traders report that Asian refiners have requested Saudi Arabia to modify its crude oil pricing methodology as conflict in the Middle East disrupts traditional pricing structures. According to traders directly involved in negotiations, the top buyers of Saudi crude prefer pricing to be based on the Intercontinental Exchange Brent crude futures benchmark, rather than a combination of the Dubai and Oman benchmarks. The traders, who spoke on condition of anonymity due to the sensitivity of the matter, indicated that discussions with Saudi Aramco are ongoing but may ultimately prove unsuccessful.

Saudi Aramco declined to comment on the requests.

The current pricing benchmark for Saudi crude consists of two components: the Oman crude futures contract traded on the Dubai Mercantile Exchange and the Dubai crude price assessed by S&P Global Commodity Insights (Platts). Saudi Aramco sets its official selling prices each month by adjusting premiums or discounts based on this benchmark. Sources familiar with the matter stated that Saudi Aramco has been asked to replace this benchmark with the Intercontinental Exchange Brent crude futures.

Since the onset of the conflict, prices for Oman and Dubai crude have surged significantly more than global benchmarks like Brent and WTI, largely due to the near-closure of the Strait of Hormuz, which has cut off most crude supplies from the Persian Gulf. Traders noted that Platts' decision to exclude cargoes loading inside the Gulf from its daily price assessments has further distorted prices.

Physical crude oil transactions are priced using various benchmarks, with different regions often favoring different reference prices. Asian refiners typically use either the Dubai crude assessment or the dated Brent assessment—both products of Platts. Some Chinese refiners, however, show a preference for using the Intercontinental Exchange Brent futures as their pricing basis.