High freight costs and Strait of Hormuz concerns prompt Asian buyers to scale back spot crude purchases after recent buying surge.
Asian refiners have reduced spot purchases of Middle East crude for October and November loadings, reversing a three-week buying spree. Buyers had previously snapped up millions of barrels of UAE, Saudi, and Iraqi crude but are now deterred by high freight costs and navigation uncertainties in the Strait of Hormuz.
The pullback follows a period of aggressive spot buying, with Abu Dhabi crude seeing significant volumes traded earlier this month. Refiners had capitalized on immediate incentives, but lingering logistical risks have weakened demand.
No immediate market reaction was reported, though the shift may signal softer regional crude demand in the near term.