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Asian Refiners Ditch UAE's Murban for Cheaper Crude

Bloomberg Markets •
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Asian refiners are abandoning Abu Dhabi’s flagship Murban crude for cheaper alternatives, traders report. This shift signals a direct challenge to the UAE’s pricing power and could pressure regional producers. The move reflects refiners’ relentless pursuit of cost efficiency amid thin margins.

Murban has long been a benchmark for Middle Eastern oil, but its premium is now under threat. As competitors like Iraqi and Iranian grades undercut prices, refiners are reweighting their feedstock mix. This rebalancing could reshape regional trade flows and impact the economics of crude procurement for key Asian buyers.

The trend may accelerate if price differentials remain wide. Abu Dhabi’s state-owned producers face pressure to adjust official selling prices to retain market share. Watch for reactions from other Gulf producers, as competition for Asian customers intensifies in a crowded, price-sensitive market.