Asian refiners diversify crude oil sources amid Middle East disruptions

Geopolitical tensions in the Middle East, specifically disruptions to Iranian oil exports, are forcing refiners in Asia to diversify their crude oil sources. Singapore-based Aster Chemicals and Energy, a joint venture between Indonesia’s Chandra Asri Group and Glencore, is shifting its procurement toward West Africa, Latin America, the United States, and Canada to secure its 300,000-barrel-a-day refinery on Bukom Island.

Similarly, Chinese independent refiners, often referred to as teapots, are aggressively seeking alternative supplies from West Africa, Canada, and South America. This shift comes as traditional sources like Iranian and Russian oil become less accessible due to naval blockades and geopolitical conflicts. These increased purchasing efforts have reportedly driven spot premiums to multi-month highs and contributed to rising Brent crude prices.