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Asian Refiners Crave Sour Crude, Pay Premium
2 Jun
Summary
- Asian refiners favor medium-sour grades for higher diesel yields.
- Upper Zakum crude is in high demand due to processing advantages.
- Refiners are offering premiums of approximately $20 per barrel.
Asian refiners are demonstrating a strong preference for medium-sour crude oils, particularly grades like Upper Zakum. This demand is driven by the superior yield of valuable products, specifically diesel and jet fuel, that can be extracted from these types of crudes through processing.
The appeal of Upper Zakum is its efficient conversion into essential fuels. This processing advantage means that refiners are willing to offer substantial premiums for access to this grade. Reports indicate that some Asian refiners have put forward offers for Upper Zakum crude at approximately $20 a barrel above prevailing market prices, highlighting the acute need for such oil.
