US Crude Imports Rise in Asia Amid Continued Hormuz Blockade, Traders Report
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**Asian Refiners Pivot to U.S. Crude Amid Ongoing Strait of Hormuz Blockade**
With the Strait of Hormuz remaining effectively impassable due to escalating geopolitical tensions and conflicting territorial claims between the U.S. and Iran, Asian refiners are aggressively securing alternative oil supplies. Shipping volumes through the critical waterway dropped significantly below seasonal averages this week, prompting buyers to look outside the Persian Gulf to safeguard their inventories.
Supported by robust refining margins and tight global fuel supplies, at least four major Asian refiners finalized purchases of U.S. crude this week for delivery later this year:
* **South Korea:** GS Caltex purchased 2 million barrels of Mars crude from Shell for November delivery. The transaction was reportedly priced at a steep premium of $13 to $14 per barrel over the October Dubai benchmark.
* **Japan:** Cosmo Energy Holdings, the nation’s third-largest refiner, secured Mars crude from Trafigura. Meanwhile, Japan’s largest refiner, Eneos Corp, acquired 2 million barrels of West Texas Intermediate (WTI) from Trafigura for November delivery, paying a premium of over $10 per barrel above October WTI prices.
* **Taiwan:** State-owned CPC Corp procured 2 million barrels of WTI through a tender at a premium of $8 to $9 per barrel over Dated Brent. CPC also acquired West African crude through the same tender.
Historically, Asia relied on the Middle East for more than half of its crude oil imports. However, the conflict involving Iran has accelerated a shift toward Western suppliers. According to ship-tracking data from Kpler, Asian imports of U.S. crude reached a record high of 2.35 million barrels per day in July.
Indicating sustained demand for non-Middle Eastern oil, Indian state-run refiners Hindustan Petroleum Corp and Mangalore Refinery and Petrochemicals Ltd also issued new crude buy tenders this week.
