Sri Lanka’s preferred oil blend climbs amid Middle East tensions and U.S. involvement in escalating conflict.
The price of Murban crude — the light oil blend favored by Sri Lanka’s sole refinery — has edged above Brent crude in recent days, driven by rising instability linked to the ongoing Israel conflict.
As of Monday, Murban crude was trading at around 78.49 U.S. dollars per barrel, compared to Brent’s 77.85 dollars. The rare price inversion comes as Israel intensifies its military actions against Iran, with the United States also entering the fray, sparking fears of wider regional disruption.
Sri Lanka’s refinery, originally designed to process Iranian light crude, shifted to Murban after U.S. sanctions cut off access to Iranian oil. The refinery depends on light crudes to efficiently produce diesel and petrol, making price movements in Murban particularly impactful for the island nation’s energy security.
With global oil markets jittery and supply routes potentially under threat, analysts warn that further escalation in the Israel conflict could push light crude prices even higher, complicating procurement strategies for countries like Sri Lanka.