Middle East Crude

Murban prices for delivery in Asia increased further, reflecting a surge in tanker rates　especially for VLCC. Expectations have grown that tanker demand from buyers will recover after Saudi Arabia offered term customers crude supplies via ship-to-ship (STS) transfers off the coast of Oman. As a result, end-users in Northeast Asia move to buy US crudes as prices are seen lower than Murban.

African/European/Russian/American Crude

From late last week through this week, additional purchases of US crude by Japanese and South Korean buyers increased. This reflects a sharp rise in prices for competing Abu Dhabi Murban, which has made WTI Midland look more attractively priced. In addition, Aramco halted operations on the East-West Pipeline connecting the oil-producing region in eastern Saudi Arabia with the port of Yanbu, significantly reducing supplies of Saudi Arabian Arab Light (AL) and Arab Super Light (ASL). There is still no clear prospect for a recovery in supplies to Asia, including Japan.

Asia Pacific Crude

In trade for November-loading Australian grades, TotalEnergies and INPEX concluded their sell tenders for Ichthys condensate. Market sentiment toward Australian light grades has turned bullish as middle distillate crack margins strengthened further. In addition, reflecting a surge in US WTI Midland for arrival prices in Asia and supply disruptions for Middle Eastern condensates, end-users in Asia are broadening their procurement options to prepare for potential supply shortages, although Ichthys condensate is not considered as a direct substitute for Middle Eastern crudes.