• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 5 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 8 days The United States produced more crude oil than any nation, at any time.
  • 22 hours Could Someone Give Me Insights on the Future of Renewable Energy?
  • 7 hours How Far Have We Really Gotten With Alternative Energy
  • 3 hours Bankruptcy in the Industry
Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Oil Buyers’ Market In Asia Set To Continue

Qingdao oil terminal

With all the oversupply concern among oil traders, the buyers’ market in Asia is likely to remain strong this year, S&P Global Platts reports today, citing local traders.

Everyone who produces oil is looking eagerly for buyers in Asia as the United States produces ever-growing volumes of light crude that has pressured premiums for these grades, making them more attractive for refiners compared with grades tied to the Dubai/Oman benchmarks.

"Arbs [are] wide open and expected to remain so for next year," S&P Global Platts quoted one Singapore trader as saying, adding data from its trade flow software cFlow showed that the U.S. exported 1.1 million bpd of crude to Asian countries in November, when production reached an all-time high of 11.7 million bpd. This compares with 627,000 bpd a year earlier.

This year, however, more U.S. crude is expected to go to European refiners, freeing up attractively priced European light crude for Asian buyers. That’s bad news for Middle Eastern producers, for whom Asian refiners are a key market. As oil prices remain stubbornly lower than desirable for these oil-dependent economies, Middle Eastern producers may turn out to be the losers in this buyers’ market, S&P Global Platts notes.

Most crude from the Middle East to refiners in China, Japan, and South Korea flows there under long-term contracts, but the buyers have options to diversify and they might exercise this option more willingly now that alternative sources are priced more attractively. This, in turn, is leading to price cuts from Middle Eastern producers and other moves to maintain market share.

Meanwhile, sellers got some bad news from China this week: Beijing issued the first crude oil import quotas for local independent refiners, and these were lower than the corresponding quotas for 2018, Reuters reported yesterday. The agency adds, however, that traders expect quotas to rise further later in 2019.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News