Japanese refiners have stepped up purchases of Middle Eastern oil, with Eneos Holdings and Idemitsu Kosan recently buying Omani crude for loading in October, amid concerns about the speed of supply arrivals following the closure of a major Saudi pipeline, Bloomberg reported, citing people familiar with the matter.
The purchases came earlier than usual as competition among Asian buyers for available crude cargoes intensified and refiners sought to reduce the risk of delayed oil arrivals in the coming months.
Premiums reach $38
Competition among Asian refiners pushed up prices for available cargoes, with two cargoes of 2 million barrels each changing hands at premiums of as much as $38 a barrel above the benchmark Dubai crude price.
Purchases made ahead of the usual schedule
Refiners typically buy Gulf cargoes in September for loading in November, but the latest move points to buyers seeking to secure their requirements sooner as supply concerns grow.
The early move by Japanese refiners reflects mounting pressure in the Asian crude market after the Saudi supply route was disrupted, as buyers compete for cargoes that can arrive sooner.
