A frantic scramble for crude oil is gripping the Asian market as Middle Eastern supply remains constrained, with buyers aggressively bidding up regional prices and pushing key benchmarks toward critical thresholds.

According to multiple unnamed traders, strong demand from Asian refiners for Middle Eastern crude is driving a rapid ascent in benchmark prices. The UAE's Murban futures contract is currently trading at $106.10 per barrel, while the DME Oman crude, which serves the Asian market, is priced at $99.18 per barrel, hovering just below the psychologically significant $100 mark. This price surge comes as persistent conflict in the Middle East continues to disrupt shipping through the Strait of Hormuz, and Saudi Arabia's oil exports have dropped to their lowest levels since 2017. The situation is compounded by delivery delays for some cargoes, originally scheduled for August but now pushed back to September or even October, which is further tightening supply and intensifying the buying pressure across the region.

Asian Refiners Accelerate Purchases, Intensifying Scramble for Alternative Supplies

Major refiners, including Indian Oil Corp and key players in South Korea and Japan, are leading the surge in Middle Eastern crude purchases. However, the volume of crude transiting the Strait of Hormuz remains markedly below normal levels, with daily shipments averaging only between 6 to 8 million barrels over the past week. Data from vessel-tracking firms Kpler and Vortexa confirms that Saudi Arabia's exports have fallen to their lowest point since 2017. With traditional supply routes under pressure, Asian buyers are expanding their search for alternative sources. Indian firms, in particular, are increasing imports from Brazil, Canada, and Argentina, while also boosting purchases of Russian crude. The competition for Russia's ESPO grade has been especially fierce, with cargo premiums reaching record highs, signaling that Asian refiners are engaged in an increasingly intense battle for limited alternative supplies as conventional channels remain constrained.