Asian refiners, including those in Thailand, Indonesia, and South Korea, are considering alternative shipping routes, such as the Cape of Good Hope, for Mediterranean and North African crude grades due to security concerns in the Red Sea. Attacks by Houthi militants in Yemen have prompted a reassessment of shipping risks. While the dependency on the Red Sea route is minimal for overall crude imports, Southeast Asian and South Korean refiners, purchasing small volumes of low sulfur crudes, are exploring options to mitigate logistical risks. Some may divert cargoes to West African ports for co-loading with other crude varieties. Additionally, refiners consider slashing purchases or replacing Mediterranean and North African supplies with plentiful light sweet US crude. Chinese refineries, less reliant on these crude sources, show limited impact for now.

SOURCE:GOOGLE