AD International Light Cycle Oil in Asia: Omani Supply in 2026
A market note on light cycle oil: what the product is, why Omani supply loaded outside the Strait of Hormuz matters in 2026, how cargoes are priced and traded, and what buyers should watch.
Read the full note (PDF) →
The note at a glance
Light cycle oil (LCO) is a middle distillate made in the fluid catalytic cracking units of refineries. Rich in aromatics, it is used for diesel and gasoil blending, as a feedstock for carbon black, in marine fuel blends and for aromatics extraction. Its value depends on sulphur and aromatics content, and it is usually priced against Platts Singapore gasoil or fuel oil plus or minus a differential.
Oman has gained relevance as an origin in 2026. Its export refineries at Sohar, on the Gulf of Oman, and Duqm, on the Arabian Sea, load outside the Strait of Hormuz, which was closed from mid-March to April and disrupted again in September. The country holds investment-grade ratings from S&P and Fitch and is not subject to sanctions. Other bypass routes exist through Fujairah and Yanbu, but the Saudi East-West pipeline was hit in September.
Cargo values are large: a 50,000-tonne cargo holds about 337,000 barrels, worth roughly $17-31 million at LCO prices of $52-93 a barrel. Trade typically runs FOB the load port or CFR/CIF Asia, against a documentary letter of credit at sight, with independent inspection and English law.
The numbers that matter
Figures as of 1 October 2026. Cargo values are illustrative (6.73 barrels per tonne), not a price offer.
Six parts, ten pages
- 01
The product
What LCO is, its typical specification and main uses.
- 02
Origin
Oman as a supplier outside the Strait: refineries, rating and routes to Asia.
- 03
Market
Hormuz risk, Asian demand, the 2026 price environment and supply security.
- 04
Trading practice
Incoterms, pricing basis, payment, inspection, documents and governing law.
- 05
Cargo economics
What a 50,000-tonne cargo is worth in low, base and high markets.
- 06
Risks and implications
A risk matrix for buyers and six practical implications.
What to remember
A versatile distillate
Diesel blending, carbon black and marine fuels; value depends on sulphur and aromatics.
A secure origin
Omani export refineries load outside the Strait of Hormuz.
Large cargo values
Roughly $17-31 m per 50,000 t cargo, so payment security matters.
Discipline pays
Inspection, documentary credit, sanctions screening and clear contracts limit the risks.
A market note for information only. It is not an offer to buy or sell, nor investment, legal or financial advice.
Main sources
- S&P Global Ratings via Muscat Daily (28 March 2026)
- Fitch Ratings via Muscat Daily (8 December 2025)
- Trading Economics, Brent crude (29 September 2026)
- Al Jazeera, Strait of Hormuz coverage (14 September 2026)
- Typical LCO specifications and trading terms: industry practice