Asian Refiners Return to Gulf Crude as Hormuz Flows Rise

The refiners have recently increased purchases from Saudi Arabia, the United Arab Emirates and Qatar, according to Bloomberg sources. Tanker-tracking data cited by Reuters showed that Asian crude imports through the Strait of Hormuz rose to more than 7.4 million barrels per day in October, from 1.6 million bpd in April. The increase helped bring total Asian crude imports back to pre-war levels seen in February.

Rising Gulf exports since August have put pressure on physical prices for regional crude grades. Middle Eastern benchmarks have weakened for weeks, a trend that may point to a growing oil glut as Persian Gulf supplies recover and high prices weigh on global demand. Producers have cut official selling prices to attract buyers, while lower prices have also made Gulf crude more competitive with price-sensitive Asian refiners amid high freight costs.

India offers another sign of the shift. Kpler data cited by Bloomberg put the country’s crude imports through Hormuz at an estimated 2.1 million bpd so far in November, above the 1.8 million bpd it imported from Russia. India is the world’s third-largest crude oil importer.