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According to a report released recently by S&P Global, due to weak demand from refineries along the U.S. Gulf Coast, crude oil exporters in the Americas are turning to the Asian market. East Asian refiners expect that more *** and Latin American heavy crude oils will flow into the Far East market in 2026. Recently, the United States and Venezuela reached a preliminary agreement under which the U.S. will import 50 million barrels of Venezuelan crude oil. This move could reduce the United States’ reliance on heavy, high-sulfur crude oil from countries such as ***, Brazil, Mexico, Colombia, and Ecuador. This situation is also affecting Asia. According to South Korea’s KNOC’s quarterly market analysis report, as well as feedback from officials in charge of raw material procurement at refineries in the United States, South Korea, and Japan, as demand for these types of oil drops in the U.S., the countries that produce them will direct more of their supply to Asia. From February 4 to 12, procurement managers for raw materials at refineries in South Korea and Japan, including **PTT and Nippon Oil Corporation**, told Platts that there are now more spot shipments of *** as well as heavy, high-sulfur crude oil from Latin America arriving in the Asian market in April and May; buyers are waiting for more favorable quotes and lower price discounts. KNOC stated in its analysis report: “The U.S. control over Venezuela’s crude oil supply is expected to bring significant changes to the heavy crude oil markets in Asia and North America.” ”Currently, South Korean refineries are importing crude oil from the Americas in large quantities. 550,000 barrels of sulfur-rich heavy crude oil from Cold Lake, purchased by a refinery in Ulsan, South Korea, is scheduled to arrive in May. About 1 million barrels of Brazilian Buzios heavy crude oil, purchased by another South Korean refinery in Ulsan, is also set to arrive in May. Data shows that as Asia’s third-largest crude oil importer, South Korea imported 30.9 million barrels of Brazilian crude oil in 2025, a significant increase of 30.5% compared to the previous year. Japanese refiners such as Ineos and Cosmo Oil have stated that Japan is highly dependent on crude oil from the Middle East, but as long as the prices of crude oil from *** and Latin America are attractive enough, they are willing to increase the proportion of such oil in their procurement structure. Data from Japan’s Ministry of Economy, Trade and Industry show that in December 2025, Japan imported 8,146 barrels per day of Colombian Castilla mixed crude oil, compared to zero during the same period last year; imports of Ecuadorian Napo crude oil increased by 18.4% on a year-on-year basis, reaching 53,184 barrels per day. Furthermore, **refineries have been using Brazilian crude oil for a long time, and if its cost-performance ratio is better than that of Middle Eastern benchmark crudes, they plan to increase the procurement of Brazilian Tupi and Buzios crude oils.