Asian refiners buy more US crude as Hormuz remains blocked, traders say

• South Korea's GS Caltex bought 2 million barrels of Mars crude at a premium of $13-14 per barrel above Dubai benchmark for November delivery, while Japan's Eneos purchased 2 million barrels of WTI at over $10 premium
• Asia sourced more than half its crude from the Middle East before the Iran conflict and imported a record 2.35 million barrels per day from the U.S. in July 2026, according to Kpler data
• Shipping traffic through the Strait of Hormuz declined significantly this week with no immediate prospect of reopening, prompting Indian state refiners HPCL and MRPL to also issue crude purchase tenders

Summary: Asian Refiners Pivot to US Crude Amid Strait of Hormuz Closure

Key Development:

At least four major Asian refiners purchased US crude oil this week as the Strait of Hormuz remains effectively closed due to competing US-Iran claims over the strategic waterway. Shipping traffic through the strait has dropped significantly by late week.

Major Transactions:

• GS Caltex (South Korea): Bought 2 million barrels of Mars crude from Shell for November delivery at $13-14/barrel premium above October Dubai benchmark
• Cosmo Energy Holdings (Japan): Purchased Mars crude from Trafigura
• Eneos Corp (Japan): Secured 2 million barrels of WTI from Trafigura for November at $10+/barrel premium above October WTI
• CPC Corp (Taiwan): Bought 2 million barrels of WTI at $8-9/barrel premium to Dated Brent, plus West African crude

Market Context:

Strong refining margins amid tight fuel supplies are driving refiners to secure crude inventories from non-Gulf sources for coming months. Asian countries normally source over half their crude from the Middle East. However, US crude imports to Asia reached a record high of 2.35 million barrels per day in July, according to Kpler data.

Additional Activity:

Indian state-run refiners Hindustan Petroleum Corp and Mangalore Refinery and Petrochemicals Ltd have issued tenders seeking crude supplies.

Market Implications:

The closure creates significant supply chain disruption for Asian energy markets, driving premium prices for alternative crude sources and boosting US crude exports to record levels. The situation supports elevated refining margins while raising concerns about sustained fuel supply security.