Asian Refiners Pay Record Premiums for Non-Middle East Crude

Refiners in Asia are paying huge premiums for crude that could replace some of the supply stuck in the Middle East, with the most suitable grades from Norway and the U.S. being bid at record-high double-digit premiums over Dated Brent. Many refineries in Asia, which is the most dependent region on Middle East supply, are designed to optimally run on the sour and heavier grades that the Gulf producers export. Now that most Gulf supply is either curtailed at the upstream level or stuck on tankers unable to pass the Strait of Hormuz, refiners…