Asian refiners buy more US crude as Hormuz remains blocked, traders say
XLE•Asia's U.S. crude imports hit record high
Before the Iran war, Asia sourced more than half of its crude supply from the Middle East. The region imported 2.35 million barrels per day of crude from the U.S. in July, a record high, according to data by ship tracking firm Kpler.
This week, India's state-run refiners Hindustan Petroleum Corp HPCL.NS and Mangalore Refinery and Petrochemicals Ltd MRPL.NS also issued tenders seeking crude. O/TEND
GS Caltex, Cosmo, Eneos and CPC secure cargoes
South Korea's GS Caltex bought two million barrels of Mars crude from Shell for November arrival. The crude was priced at a premium around $13-14 per barrel above the October Dubai benchmark, traders said.
Japan's third-largest oil refiner, Cosmo Energy Holdings 5021.T, bought Mars crude from Trafigura, while Eneos Corp, Japan's biggest refiner, purchased 2 million barrels of West Texas Intermediate (WTI) crude from Trafigura for November delivery with a premium over $10 per barrel above the October WTI price.
Taiwan's state-owned CPC Corp bought 2 million barrels of WTI via a tender at a premium of around $8 to $9 a barrel to Dated Brent. CPC also purchased crude from West Africa via the tender, the people said.
The companies do not typically comment on commercial deals.
Asian refiners turn to U.S. crude amid Hormuz disruption
At least four Asian refiners bought U.S. crude this week, as the Strait of Hormuz remained effectively closed and refiners sought alternative supplies for delivery later this year, traders said.
Shipping traffic at the Strait of Hormuz fell below the average for this month towards the end of the week due to competing U.S. and Iran claims over control of the waterway.
With no immediate prospect of a free flow of shipping through the strait, strong refining margins amid tight fuel supplies have encouraged refiners to secure crude inventories for the coming months from beyond the Gulf.
