Asia Turns to US Crude as Hormuz Crisis Deepens

Asian refiners are increasingly turning to U.S. crude oil as an alternative to Middle Eastern supplies, amid the ongoing crisis in the Strait of Hormuz.

The strait's tanker traffic and overall shipping have declined significantly this week, with at least four Asia-based refiners purchasing U.S. crude volumes in recent deals.

South Korea's GS Caltex bought 2 million barrels of Mars crude from Shell for November delivery at a premium of $13-14 above the Dubai benchmark for October.

Japan's Cosmo Energy Holdings also purchased Mars from Trafigura, while Eneos Corp, the country's largest refiner by capacity, acquired 2 million barrels of West Texas Intermediate (WTI) from Trafigura for November at a premium of over $10 per barrel above the October WTI price.

Taiwan's state-owned CPC Corp acquired 2 million barrels of WTI via a tender at a premium of around $8-9 per barrel to Dated Brent.