Aster Shifts Crude Buying to Americas, Africa Amid ME Disruptions

Singapore-based Aster Chemicals and Energy is shifting its crude procurement strategy in response to disruptions to Middle Eastern oil supplies caused by the ongoing Iran war. The refiner has traditionally sourced around 70% of its crude from the Middle East, but now plans to tap into suppliers in West Africa, Latin America, the US, and Canada.

Aster's senior general manager Han Lih Kwong spoke at the APPEC conference about the change, which is part of a broader trend among Asian refiners. The company operates a 237,000 barrels per day refinery on Singapore's Bukom Island, which it runs as a joint venture with Indonesia's Chandra Asri and global commodities trader Glencore.

The shift towards Atlantic Basin crude provides Aster with alternative sources of oil as Middle Eastern exports become increasingly difficult and costly to secure. Asian refiners have been seeking crude from non-Middle Eastern producers, such as the US, since the start of the Iran war. For example, Japan's Cosmo Energy bought Mars crude from Trafigura in August, while Taiwan's CPC purchased US and West African crude.