China’s dominant share of Omani crude exports is fragmenting Asia’s oil market structure
China absorbed nearly 90 percent of Oman’s crude exports, leaving minimal supply for other Asian buyers and driving benchmark premiums higher. Despite rising Omani production, access has concentrated sharply, reducing market liquidity. Asia is splitting into secured supply flows for China and a constrained, higher-cost procurement market for others.
China absorbed nearly 90 percent of Oman’s crude exports, leaving minimal supply for other Asian buyers and driving benchmark premiums higher. Despite rising Omani production, access has concentrated sharply, reducing market liquidity. Asia is splitting into secured supply flows for China and a constrained, higher-cost procurement market for others.
Oman’s rising production is no longer translating into accessible market supply
Oman’s crude production reached 32.634 million barrels in March, reflecting strong growth both month on month and year on year. In simple terms, the country is producing more oil than before. Under normal conditions, this would ease supply constraints across the region. (Oman Statistical 2026)
However, exports tell a different story. Of the 26.54 million barrels exported, around 90 percent were directed to China, equivalent to roughly 23.75 million barrels. This concentration means that increased output is not improving market liquidity. Liquidity, in this context, refers to the availability of barrels for multiple buyers in a competitive market.
The residual supply is minimal. Only about 2.79 million barrels were distributed across Singapore, Japan, and Taiwan combined. These are major importing economies now competing for a shrinking pool. The implication is structural. Oman remains a stable producer, but it
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