Major oil refiners are reducing purchases of the United Arab Emirates’ flagship Murban crude, opting instead for lower-cost benchmark grades amid shifting global supply dynamics. The pivot reflects growing cost sensitivity in refining operations.
- Murban crude demand dropped 28% quarter-over-quarter in late 2025
- Refiners are switching to cheaper alternatives like Iraqi Basra Light and Kazakh Kashagan
- Price differential between Murban and Dubai crude fell from $1.20 to $0.40 in one quarter
- Top importers—South Korea, India, Germany—reduced Murban intake by an average of 35%
- U.S. Gulf Coast and West African crudes now offer up to $3.50/bbl savings
- ADNOC has introduced volume discounts and flexible payment terms in response
A notable shift is underway in international crude trading, with key refineries across Asia and Europe scaling back on Murban crude from the UAE. Traditionally a premium-grade benchmark, Murban has seen reduced demand as refiners prioritize cost efficiency amid narrow refining margins. Recent trades show Murban volumes down 28% quarter-over-quarter, while imports of lighter, cheaper grades like Iraqi Basra Light and Kazakhstan's Kashagan have risen sharply. The move underscores a broader recalibration in global crude preferences. Murban, once favored for its high quality and consistent delivery, now faces competition from alternatives priced up to $3.50 per barrel lower. In November 2025, Murban was traded at a $1.20 premium over Dubai crude, but by December, that spread narrowed to just $0.40, signaling declining market dominance. Refineries in South Korea, India, and Germany—three of the top importers of Murban—reported a 35% average reduction in Murban intake during Q4 2025. These facilities are increasingly turning to discounted barrels from West Africa and the U.S. Gulf Coast, where logistics costs remain favorable and crude availability has increased due to expanded U.S. shale output. The trend impacts pricing power and export strategies for UAE producers. State-owned Abu Dhabi National Oil Company (ADNOC) has responded by offering more flexible payment terms and volume discounts. However, analysts note that without a structural improvement in relative value, Murban may face prolonged downward pressure on demand.