Middle East Crude

In Middle Eastern crude trade linked to Dubai and OSP, trade for Murban and Oman continued as those grades can be supplied from the outside of the Strait of Hormuz. Meanwhile, trade in crude produced and supplied within the Persian Gulf continued to be suspended. As of Thursday afternoon, the Yanbu port facing the Red Sea was reportedly attacked. From the port, Saudi Arabia supplied Saudi grades such as Arab Light (AL).
In Japan, inventories held by the private sector would be drawing down from late March. This was mainly for oil products, but crude grades such as Saudi Arabian and Abu Dhabi grades would be drawing down. Meanwhile, a release of national strategic reserves would also start from late March.

African/European/Russian/American Crude

　 Demand for US WTI Midland surged in Asia such as Japan, South Korea and Thailand as an alternative for Middle Eastern grades in the wake of a supply disruption of Middle Eastern grades caused by the conflict involving Iran. Furthermore, Japanese refiners also have demand for WTI to blend it with crude grades to be released from national strategic reserves. Crude grades stored in national strategic reserves are mainly heavy grades such as the Neutral Zone's Hout and Khafji, so that those grades need to be blended with light grades to produce stable oil products. As a result, "Japanese refiners are likely to focus on light grades in the spot market," said an end-user in Northeast Asia.

Asia Pacific Crude

　 The tradable levels for May-loading NWSC in Australia were heard at premiums of mid $3.00s to Dated Brent. Reflecting a slide for CFR Asia prices for US WTI Midland, many end-users such as petrochemical firms in South Korea lowered their valuations for NWSC. In addition, demand for Australian condensates appeared to be slowing down to a certain extent. Players in Asia cut operating rates for some production facilities in anticipation of a supply shortage of naphtha and condensates ex the Middle East.