Asian crude oil buyers are booking cargoes from Europe, the Mediterranean and Africa after a sharp drop in Brent crude’s value against Middle East benchmark grade Dubai made the shipments profitable, industry sources said on Thursday. Traders have booked at least 10 million barrels of Russian Urals, Kazakhstan’s CPC Blend and North Sea crude to load in August for China and South Korea, while also eyeing West Africa and Libya supplies for Asia, said several sources with knowledge of the deals, including two involved in some of the trades.
The arbitrage purchases come as buyers seek oil to replace more expensive supplies from the Middle East and as Iranian exports to Asia fall ahead of U.S. sanctions.
European crude exports to Asia last peaked for loadings in May at 34 million barrels, trade flows data on Eikon showed.
“The arb (arbitrage) is open,” said one of the sources, who buys crude for a North Asian refiner and has been making inquiries on the shipments.
“Light…
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