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Market Chatter: Japanese Refiners Boost Middle East Oil Purchases Amid Saudi Pipeline Shutdown

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Refiners from Japan have increased their purchases of oil from the Middle East as the shutdown of a vital Saudi Arabian pipeline raised concerns over availability of prompt supplies, Bloomberg reported Wednesday.

Recently, Japan's Eneos Holdings and Idemitsu Kosan secured Omani crude cargoes meant for loading as soon as October, which is earlier than usual, the report said, citing traders. Usually, Persian Gulf cargoes bought in September are loaded in November.

Premiums are seeing a significant spike due to competition between Asian buyers for prompt barrels. Although total volumes were unclear, two cargoes of 2 million barrels each traded at premiums of up to $38 a barrel over the Dubai benchmark, with sellers including trading houses and major oil companies, traders said.

The purchases reflect concerns over availability of Middle Eastern oil supplies as several export routes face disruptions amid the US-Iran and Russia-Ukraine wars. Saudi Arabia shut the East-West pipeline after attacks last week while Saudi Aramco is delaying some deliveries to Europe, the report said.

has reached out to Eneos Holdings and Idemitsu Kosan separately for comments.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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