South Korea’s GS Caltex led the move this week, securing 2 million barrels of Mars crude from Shell for November delivery at a premium of $13 to $14 above the Dubai benchmark. Japanese firms followed suit, with Cosmo Energy Holdings and Eneos Corp purchasing significant volumes of Mars and WTI crude from Trafigura. The latter deal commands a premium exceeding $10 per barrel over October WTI prices.
Asian Refiners Pivot to U.S. Crude Amid Hormuz Transit Stagnation
A deepening stalemate at the Strait of Hormuz has forced a strategic shift among North Asian energy giants, who are now aggressively securing U.S. crude supplies to bypass the paralyzed Middle Eastern chokepoint. With tanker traffic through the narrow passage stalling, regional refiners are seeking alternatives to maintain high production levels.
Taiwan’s state-owned CPC Corp also entered the market, acquiring 2 million barrels of WTI through a tender at a premium of $8 to $9 per barrel to Dated Brent. The ripple effect of the transit crisis is extending further south, where Indian state refiners are scrambling to compensate for constrained term deliveries. Mangalore Refinery and Petrochemicals Limited and Hindustan Petroleum Corporation Limited have initiated spot tenders to source a combined 6 million barrels of crude, highlighting a broader regional vulnerability to the ongoing maritime blockade.
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