Despite OPEC and its allies committing to fresh crude production and export limits in early 2024, Asian refiners, particularly in South Korea, Japan, Taiwan, and China, remain unaffected. Major Middle Eastern suppliers like Saudi Aramco and Abu Dhabi National Oil Co. (ADNOC) continue to prioritize their East Asian customers, providing stable term contractual volumes. Saudi Arabia and Russia have committed to voluntary supply cuts, but the Middle Eastern producers are consistently fulfilling monthly term supply contracts for Asian buyers. The region has not experienced disruptions in sour crude procurement despite prolonged OPEC+ cuts. Additionally, Asian refiners are exploring opportunities to diversify their crude sources, with a focus on attractive prices for light sweet US crude amid a narrowing Brent-Dubai price spread.

SOURCE:GOOGLE