Oman crude surged to a record ~$162 per barrel before dropping back to ~$119.

The Dubai benchmark, which directly influences Oman pricing, is normally set using 5 different types of crude oil.

The Strait of Hormuz closure has blocked 3 of them from reaching global markets, leaving only 2 to set the price.

With so few barrels available, TotalEnergies bought up a large portion of what remained, pushing both Dubai and Oman prices artificially sky-high.

Meanwhile, trading volume on the Oman futures contract is on track for its lowest monthly average since 2007, a sign the benchmark is losing credibility fast.

As a result, Asian refiners are now calculating the price of their US crude purchases using Brent as the reference, instead of Dubai.

Japanese refiner Taiyo Oil just bought 2 million barrels of US crude for July delivery, paying ~$19 above the Brent price.

War-driven distortions and wild price swings are forcing refiners to look for alternative pricing..