Asian refineries shift to American and Argentine oil amid Middle East supply disruptions

Asian refineries are increasingly diversifying their crude oil sources, shifting away from Middle Eastern supplies toward the Americas due to maritime security risks in the Red Sea. Following a maritime blockade imposed by Sana'a forces on Saudi Arabian oil exports from Yanbu, flows to Asia have dropped from 5 million barrels per day to less than 2 million.

Refineries in Japan, South Korea, and China—including giants like PetroChina and Shanxi Yanshan Petroleum—have begun purchasing Argentine ‘Medanito’ crude. Argentine exports to Asia have risen to an average of 35,000 barrels per day this year, a fivefold increase over last year. Argentine crude is noted for being cheaper than US West Texas Intermediate and avoids major maritime chokepoints.

Broader data indicates a significant shift in global trade routes. Exports from the Americas to Asian markets have surged, with the region's share of seaborne crude exports rising from 23% in 2025 to approximately 30% in 2026. Leading exporters include the United States, Brazil, Canada, Guyana, and Argentina. This shift is driven by disruptions in the Strait of Hormuz and the Red Sea, which have forced tankers to take longer, more expensive routes around the Cape of Good Hope.