Asian refiners lift U.S. crude buying amid Hormuz issues

Asian refiners stepped up spot purchases of U.S. crude this week, concentrating on U.S. Gulf Coast grades such as Mars and WTI, as shipping disruptions linked to the Strait of Hormuz tightened routes, market participants said.

Companies in South Korea and Japan confirmed the buying, while tender documents pointed to additional activity in Taiwan. Officials in India also signaled interest in securing extra supplies for future delivery, suggesting the demand shift is broader than a handful of buyers.

North Asia spot buying centers on Mars and WTI South Korea’s GS Caltex said it secured two South Korea’s GS Caltex said it secured two million barrels of Mars crude for November. Market participants said the focus on U.S. Gulf grades reflects refiners’ efforts to manage near-term feedstock needs amid uncertainty around shipping routes. In Japan, Cosmo Energy and Eneos Corp said they bought Mars and WTI cargoes. Market participants said these purchases added to demand for U.S. Gulf Coast barrels during a week of stronger interest in Atlantic basin supplies. Taiwan tenders add WTI and West African barrels In Taiwan, CPC Corp purchased WTI and West African crude through a tender, according to tender documents. Market participants said combining U.S. and West African supply reflects sourcing patterns aimed at securing dependable delivery windows.

They said longer or alternative routes have lifted

Trading sources said the current procurement adjustment is being shaped by freight costs and routing constraints. They said longer or alternative routes have lifted freight costs and made on-time deliveries from the Persian Gulf more difficult, with the Strait of Hormuz cited as a factor tightening shipping routes.

Freight constraints narrow arbitrage and influence prompt pricing

Market participants described the near-term impact as stronger demand for Atlantic basin grades and a narrower arbitrage window. They said this can support higher prompt prices for Mars and WTI when nearby barrels become more sought-after.

Officials in India said refiners are seeking additional crude supplies for future delivery, though specific cargoes were not detailed. Market participants said the comments indicate the sourcing shift may extend across the region’s refining system rather than remaining limited to a small group of buyers.

Attention is expected to remain on November loading schedules, with market participants also watching tanker routing through September 30, 2026 for signals on whether the move toward U.S. sourcing persists and how freight levels and prompt spreads adjust.