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Europe Sees Influx of Rare Oman, UAE Crude as China Cuts Orders

Bloomberg Markets •
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Europe will receive a surge of Middle East crude next month as China trims imports, easing supply gaps caused by the Iran war. Six supertankers will bring 12 million barrels from the United Arab Emirates and Oman, mainly to northwest Europe. An additional tanker heads to Rotterdam from Iraq, expanding the region’s supply base.

China once imported 70‑80% of Oman’s crude, but May loading fell to 65,000 barrels a day from over 700,000 in February. UAE imports dropped to zero from 750,000. The widening Brent‑Dubai EFS spread—up to $10 a barrel from $6.75—boosted Dubai‑linked grades, making them more attractive to European refiners.

The cargoes include 4 million barrels each of Murban, Upper Zakum and Oman, loaded from Fujairah or Mina Al Fahal, both outside the Strait of Hormuz. These ports sidestep the Gulf’s traffic jams, allowing steady exports even amid disruptions. European refineries, which usually source little Middle East crude, welcome the influx.

For Europe, the influx offers a rare chance to diversify supplies amid geopolitical strain. With China’s pullback, European markets gain access to barrels that would otherwise consolidate in Asia. The shift highlights how global trade dynamics can reshape regional oil flows and pricing structures.