Asian Refiners Turn to US Crude

Asian refiners have booked near-record volumes of US crude to be shipped in August according to Reuters sources as buyers look for Middle East replacements.

• Chinese demand has been strong for light crude purchases from the US and Brazil while reducing demand for similar crudes from UAE.
• About 1.5 million to 1.9 mn bpd of US crude, mostly WTI Midland, will be bound for Asia next month, according to the sources. That would be shy of the record 2.2 million bpd loaded in April if near the upper end of estimates, according to shiptracking data from Kpler.
• The average discount for WTI futures to Dubai swaps was at $5.40 a barrel, as of July 20, slightly narrower than $6.08 a barrel last month but wider than $3.93 seen in May – still prompting the purchases, helped by cheaper VLCC rates on the route.
• China’s US crude imports reached 742,824 bpd in June, the highest level since December 2020, according to customs data.