Middle East Crude

　Regarding crude supply within the Middle East Gulf, shipments appear to be continuing at Saudi Arabian ports. At Ras Tanura, part of the refinery was shut down following a drone attack by Iran, but crude supply itself remained ongoing. At Juaymah, very large crude carriers (VLCCs) were said to be berthing and loading cargoes as usual. Meanwhile, in Qatar, loadings at Mesaieed were apparently halted, while in Abu Dhabi, United Arab Emirates (UAE), shipments from Das Island and Zirku Island also appeared to have been suspended. "Crude supply from Kuwait is facing disruptions," a South Asian company said. In Iran, naval facilities on Kharg Island--where most of the country's crude exports were handled--were damaged in attacks by the US and Israel, but crude supply itself was not apparently affected.

African/European/Russian/American Crude

Japanese end-users secured several cargoes of April-loading WTI Midland as alternatives for disrupted Middle Eastern crudes. Idemitsu Kosan purchased 2mil barrels of WTI Midland for first-half April loading on an FOB basis through a tender. The price was said to have been premiums in the $3s to Dubai quotes. Idemitsu also bought 2 mil barrels of Mars for first-half April loading on an FOB basis via tender. Cosmo Oil, meanwhile, secured 1mil barrels of WTI Midland for first-half April loading via private negotiations. Taiyo Oil also purchased 2mil barrels of WTI Midland for May-June arrival through a tender. In trade for Russian grade, Indian refiners resumed purchases of Urals for April arrival. The move reflected efforts to secure alternative supplies for Middle Eastern crudes. Meanwhile, the US, which had previously urged India to halt imports of Russian crude, appeared to be taking a permissive stance toward India's renewed purchases.

Asia Pacific Crude

A supply outlook for May-loading Vietnamese grades by PV Oil was not clear so far. "It remains uncertain whether PV Oil would sell May-loading Vietnamese grades," said an energy company in Northeast Asia. PV Oil preferred to secure oil inventories in the domestic market and could skip spot sales for May-loading cargoes. Iran virtually blocked the Strait of Hormuz, so that countries in Asia such as Japan, South Korea, China and Thailand were working on measures to cope with a prolonged disruption of Middle Eastern grades. Many end-users already reduced refinery operational rates and trying to secure inventories for crude oil and oil products.