Those_Prices

                                                                                      

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Copilot:

Oil prices; who buys Murban Oil?

Here’s a clear, fact‑driven snapshot of current oil prices and who buys Murban crude, based strictly on the latest available data.

🛢️ Current Oil Prices (Including Murban)

The most recent global benchmarks show elevated prices driven by Middle East instability:

Murban Crude: $118.8 per barrel (latest update) 

Brent Crude: $114.6 per barrel 

WTI Crude: $101.0 per barrel 

These prices reflect ongoing supply disruptions and geopolitical tensions, especially around the Strait of Hormuz.

🌍 Who Buys Murban Oil?

Murban is a light, sweet crude produced by ADNOC (Abu Dhabi). It has become a major benchmark for Asia‑bound crude, and the buyer base is well‑documented.

                                                                                               

Other Buyers

A total of 48 Murban crude importers across 8 countries were active in the most recent reporting period. 

Additional buyers appear in global trade listings, including research institutions and smaller refiners, but India dominates commercial demand.

🧭 Why India Buys So Much Murban

Murban’s low sulfur content makes it ideal for producing gasoline and diesel under strict emissions standards.

ADNOC’s Fujairah export terminal allows shipments that bypass the Strait of Hormuz, making Murban more reliable during regional crises.

If you want, I can also map how Murban prices influence Canadian fuel costs, or compare Murban to other benchmarks like WTI and Brent.

It seems like a highly desirable product. Do Canada or the US ever buy any??

Short answer: No — neither Canada nor the United States meaningfully import Murban crude. Both countries overwhelmingly rely on regional crude sources, and Murban is almost entirely absorbed by Asian refiners, especially India. Here’s the breakdown, with citations.

🇨🇦 Does Canada import Murban?

No. Canada’s crude imports come almost entirely from the United States (≈72–78%), with the remainder from countries like Nigeria and Saudi Arabia — not the UAE’s Murban crude.

In 2023, 72.4% of Canada’s imported crude came from the U.S. 

In 2024, Canada imported 17.7 million tonnes of crude from the U.S., its largest source by far. 

Canada’s refineries in Quebec and Ontario are supplied mainly by U.S. light oil and Western Canadian crude delivered through U.S. pipelines. 

Why Canada doesn’t buy Murban:

Murban is a premium light sweet crude priced higher than WTI.

Canada already has abundant domestic light crude and cheap U.S. supply.

Importing Murban from the UAE would be economically irrational given shipping distance and cost.

🇺🇸 Does the United States import Murban?

Effectively no.  

The U.S. imports from a wide range of countries — but the UAE barely registers, and Murban is not a significant component.

In 2024, U.S. imports from the United Arab Emirates were only 18.7 million barrels, a tiny fraction of total U.S. imports (3.1 billion barrels). 

These UAE imports are typically Upper Zakum or other grades, not Murban.

The U.S. is the world’s largest oil producer, so it rarely pays a premium for foreign light sweet crude.

Why the U.S. doesn’t buy Murban:

The U.S. produces massive volumes of its own light sweet crude (Permian, Bakken).

U.S. refiners prefer heavier, cheaper grades for refinery optimization.

Murban’s price premium makes it unattractive.

🌍 So who does buy Murban?

Primarily Asia, especially India, because:

Murban is ideal for modern Asian refineries.

ADNOC exports Murban from Fujairah, bypassing the Strait of Hormuz.

India’s HPCL, Reliance, and BPCL are the top importers.

🧭 Why Murban seems “highly desirable”

You’re right — Murban is a premium crude because:

It’s light and sweet (low sulfur).

It yields high-value products (gasoline, diesel, jet fuel).

It’s stable and geopolitically safer to ship from Fujairah.

But “desirable” doesn’t mean “universally purchased.”

It means desirable for refiners who lack domestic light sweet crude — which is not the case for Canada or the U.S.

If you want, I can map how Murban’s price indirectly affects gasoline prices in Quebec, especially given your region’s dependence on U.S. light crude and global benchmarks.

There might not be enough Murban available to affect global prices!!??

Short answer: You’re absolutely right to question it — Murban is not a large enough stream to move global oil prices on its own. Even though it’s a premium, highly desirable crude, its total export volume is small compared with global supply, and its price influence comes mostly from benchmarking and regional Asian demand, not from sheer volume.

Let’s break it down with the latest data.

🛢️ 1. How much Murban is actually available?

Production & Export Volumes

The Murban Bab field produces ~250,000 barrels per day. 

ADNOC Onshore’s total Murban export availability (from multiple fields feeding the Murban stream) is forecast at ~1.59–1.61 million barrels per day through 2026. 

ADNOC recently cut some July cargoes by 3–4 million barrels, equal to two days of Murban production, showing how tight the stream is. 

Compare that to global oil supply

Global oil production is roughly 102 million barrels per day.

Murban’s export stream (~1.6 million b/d) is about 1.5% of global supply.

👉 Conclusion: Murban is tiny relative to the global market.

🌍 2. So why does Murban matter at all?

Even though the volume is small, Murban has outsized influence because:

✔️ It’s a benchmark crude

Murban is traded on ICE Futures Abu Dhabi and is used as a pricing reference for many Asian refiners.

Over 1.5 billion barrels of Murban futures traded in just 3 months in 2024 — far more than physical supply. 

This means Murban’s paper market is huge, even if its physical market is small.

✔️ It’s light, sweet, and low-carbon

Refiners love it because it yields high-value products (gasoline, diesel, jet fuel) with minimal sulfur.

✔️ It bypasses the Strait of Hormuz

Exports from Fujairah avoid the chokepoint, making Murban a “safer” crude during Gulf tensions.

📉 3. Can Murban move global oil prices?

Not by volume.  

Its physical supply is far too small.

But it can influence regional pricing, especially in:

India

Japan

South Korea

Singapore trading hubs

Because these markets use Murban as a benchmark, price spikes can ripple through Asian refined product markets — but they do not set global prices the way Brent or WTI do.

🇨🇦 4. Does Murban affect gasoline prices in Quebec?

Only indirectly, and very weakly.

Québec’s gasoline prices follow:

Brent (global benchmark)

U.S. East Coast refined product prices

Exchange rate (CAD/USD)

Local taxes

Murban is not part of the supply chain for Canada or the U.S., and its volume is too small to shift Brent.

🧭 Bottom line

Murban is desirable because of quality and reliability.

But it’s small — only ~1.6 million b/d in a 102 million b/d world.

It cannot move global oil prices by itself.

Its influence is regional and financial, not volumetric.

If you want, I can map out which crude grades do move global prices, or show how Brent vs WTI vs Murban each affect what you pay at the pump in Québec.

I read this morning that China was sending oil to SouthEast Asia, despite a ban on exports...

Yes — China is sending fuel to Southeast Asia despite its own export ban. Multiple tankers delivered diesel and distillates to the Philippines and Vietnam in the past week, even though Beijing officially halted refined‑fuel exports earlier this month. 

Below is a clear breakdown of what’s happening and why it matters.

🇨🇳 What China Is Doing

✔️ China delivered over 360,000 barrels of diesel and distillates

Shipments went to:

Philippines (via tankers Ding Heng 36 & Auchentoshan)

Vietnam (via tanker Great Ocean)

These deliveries occurred after Beijing imposed a ban on exports of:

Diesel

Gasoline

Jet fuel

❓ Why is China exporting despite the ban?

1. Contracts may have been cleared before the ban

Bloomberg notes the cargoes were likely approved before authorities tightened restrictions, even if the physical loading happened afterward.

2. “Oil diplomacy” during a regional emergency

Southeast Asia is facing:

Severe fuel shortages

High prices due to the Middle East war and disruptions around the Strait of Hormuz

China is positioning itself as a reliable supplier and strengthening regional influence.

3. Strategic geopolitical messaging

China publicly stated it is ready to help Southeast Asia manage energy insecurity.

This allows Beijing to:

Build goodwill

Counter U.S. influence

Present itself as a stabilizing power during the Gulf conflict

🔥 Why this matters for global oil markets

1. China is normally a major exporter of refined fuels

When it bans exports, Asia loses a key supply source — worsening shortages.

2. These “exception” shipments show how tight the market is

Countries like the Philippines are in national emergency mode due to fuel shortages.

3. China’s actions can soften regional price spikes

Even small cargoes can ease pressure in Southeast Asia, where inventories are low.

🇨🇦 How this affects you in Québec

Even though these events are happening far away, they still matter for your gasoline prices in St‑Jean‑sur‑Richelieu:

Asian shortages push global refined product prices upward.

That feeds into Brent, which influences Eastern Canada’s gasoline prices.

Any instability around the Strait of Hormuz amplifies this effect.

So yes — even a few Chinese cargoes can slightly dampen what would otherwise be sharper price spikes.

If you want, I can map out how the Middle East conflict + China’s export ban + Murban supply combine to influence Québec gas prices this week.