Asian refiners have secured a new round of United States crude cargoes for November delivery as persistent risks around the Strait of Hormuz push major buyers in South Korea, Japan and Taiwan to diversify supply. Reuters reported on Sunday, citing trade sources, that the disclosed purchases total at least 6 million barrels, while an additional Japanese deal had no volume specified.
South Korea's GS Caltex bought 2 million barrels of Mars crude from Shell at a premium of about $13 to $14 a barrel over the October Dubai benchmark, according to the sources. Japan's Cosmo Energy also purchased Mars crude from commodity trader Trafigura, although Reuters did not report the cargo size or price. Mars is a medium sour grade produced in the US Gulf of Mexico.
Japan's largest refiner, Eneos, purchased 2 million barrels of West Texas Intermediate crude from Trafigura at a premium exceeding $10 a barrel over the October WTI price, the sources said. Taiwan's state-owned CPC bought another 2 million barrels of WTI through a tender at a premium of roughly $8 to $9 a barrel to dated Brent. The companies had not publicly confirmed all of the commercial terms in the trade-source report.
The transactions extend a shift that began when disruption around Hormuz complicated traditional Gulf supply routes. S&P Global Energy previously reported that South Korea was Asia's largest buyer of US crude in 2025, taking 174.9 million barrels, while Japan imported 37.9 million barrels of US light sweet crude that year, nearly twice its 2024 volume.
The premiums show that security and availability can outweigh the longer voyage from the American Gulf Coast. AP has reported that South Korea sourced more than 60% of its crude through Hormuz last year, making alternative cargoes important for refinery operations and supplies of gasoline, diesel and petrochemical feedstocks. Competition for Atlantic Basin barrels can also support US exporters while raising acquisition and freight costs for Asian processors.
Market participants will now watch shipping conditions, war-risk insurance and November crude differentials to see whether the purchases become a durable change in trade flows. A sustained Asian pivot toward US grades could tighten Atlantic supplies, but safer and more reliable Gulf shipments could restore some Middle Eastern producers' market share. Final delivery prices and schedules remain subject to commercial and logistical conditions.
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