Mideast Oil Prices Diverge as Refiners Seek Cheaper Options

Middle Eastern crude prices are diverging, with heavier grades growing cheaper relative to lighter barrels — a shift that’s encouraging Asian refiners to favor medium and sour crudes to boost margins.

Spot differentials for grades such as Upper Zakum, Al Shaheen and some Saudi crudes have gained less than lighter Murban benchmark for consecutive weeks since late December. Traders said the move reflects additional sales by producers including Saudi Aramco to Asian buyers, combined with tightening supplies of lighter grades globally.