Asian oil refiners are shifting their focus back to Middle Eastern crude supplies, reversing a trend that saw them turn to alternative sources during months of regional conflict. The rebound in flows comes as refiners in Japan, China, and Thailand either increase or restart purchases from producers like the United Arab Emirates, Saudi Arabia, and Qatar.
Traders familiar with the matter, who spoke on condition of anonymity, noted that the resurgence includes shipments that must pass through the Strait of Hormuz, an area still marked by contention. Despite the risks, refiners are opting for Middle Eastern crude, reducing their reliance on suppliers such as the US.
The move highlights the strategic importance of Middle Eastern oil for Asia's energy-hungry economies. While the Strait of Hormuz remains a potential flashpoint, the economic incentives appear to outweigh the geopolitical risks for now.