Asian Refiners Double US Crude Purchases Amid Hormuz Closure

Asian refiners are increasing their purchases of US crude oil for September to over 40 million barrels, nearly double the 22 million barrels bought in August. This surge comes during the sixth month of war in Iran, as the continued closure of the Strait of Hormuz disrupts traditional Middle Eastern oil supplies.

The Federal government of the United States has indicated it has no plans for additional releases from the Strategic Petroleum Reserve to mitigate the resulting market pressure. This shift in trade volume is expected to strain US domestic supplies and increase fuel prices for American consumers, as domestic refiners are already operating at near-record rates.

Market data suggests the increased demand from Asia will divert crude flows away from Europe. Sour crude grades, particularly the Mars benchmark, are expected to face the most significant tightness due to the supply shift.