Hormuz Crisis Pushes Asian Refiners Toward U.S. Oil
North Asian refiners have increased buying activity to secure U.S. crude oil supply as an alternative to the Middle Eastern crude that may not make it outbound from the Strait of Hormuz as the U.S.-Iran stalemate continues and the chokepoint remains effectively closed. At least four Asia-based refiners have bought U.S. crude volumes this week alone, traders told Reuters on Friday. This week,…
As the U.S.-Iran stand-off persists and the Strait of Hormuz remains effectively closed, Asian refiners are increasingly turning to U.S. crude oil as an alternative supply. Four Asia-based refiners made U.S. crude purchases this week, according to traders speaking to Reuters on Friday. Tanker traffic at the Strait of Hormuz has decreased further amid the ongoing crisis, prompting refiners to seek alternative sources.
GS Caltex, a South Korean refiner, bought 2 million barrels of Mars crude from Shell for delivery in November at a $13-14 premium above the Dubai benchmark. Cosmo Energy Holdings, a major Japanese refiner, purchased Mars from Trafigura, and Eneos Corp, Japan's largest refiner, bought 2 million barrels of WTI from Trafigura. Taiwan's state-owned energy company, CPC Corp, acquired WTI through a tender at a $8-$9 per barrel premium to Dated Brent.
In India, Mangalore Refinery and Petrochemicals Limited and Hindustan Petroleum Corporation Limited are seeking a combined 6 million barrels of crude oil via spot tenders due to constraints on term deliveries caused by the Middle East crisis.
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