Spot cargoes from the Persian Gulf are being redirected to the U.S. West Coast after Asian refiners secured sufficient non-Middle Eastern supply for the next two months.
Asian refiners are offering Middle Eastern crude cargoes to the U.S. West Coast, reflecting a recovery in supply from the Strait of Hormuz. The shift follows months of efforts to secure alternative sources ahead of summer demand, leaving buyers well-stocked for the near term.
Refiners had prioritized non-Middle Eastern crude over the past four months, ensuring arrivals through the next two months. With inventories sufficient, spot purchases from the Middle East have become less urgent, freeing up cargoes for other markets.
The reopening of the Strait of Hormuz has eased supply constraints, allowing refiners to adjust procurement strategies. The redirected flows may pressure regional crude differentials as availability improves.