Asian Refiners Rush to Secure US Crude Amid Hormuz Crisis
North Asian refiners are scrambling to secure alternative crude oil supplies after the ongoing US-Iran stalemate effectively closed the Strait of Hormuz, a critical chokepoint for Middle Eastern crude exports.
This week alone, at least four Asia-based refiners have bought U.S. crude volumes, traders told Reuters on Friday, as tight fuel markets and sky-high refining margins encourage refinery runs.
The deals include GS Caltex of South Korea buying 2 million barrels of Mars crude from Shell for delivery in November, priced at a premium of $13-14 above the Dubai benchmark for October. Cosmo Energy Holdings, Japan's biggest refiner by capacity, Eneos Corp, also purchased 2 million barrels of West Texas Intermediate (WTI) crude from Trafigura for November delivery, priced at a premium of over $10 per barrel above the October WTI price.
CPC Corp, Taiwan's state-owned energy company, acquired 2 million barrels of WTI via a tender at a premium of around $8 to $9 per barrel to Dated Brent. Some Indian refiners are also seeking spot crude supply as term deliveries are constrained by the crisis in the Middle East and its key oil chokepoint.