Asian Oil Refiners Display Animal Spirits as Crude Glut Persists
This article is for subscribers only.
The surge in oil supplies that has crushed prices is prompting some refiners in Asia to buy more crude that can be delivered immediately rather than at some future date, adding to pressure on sellers.
With OPEC pumping the most in almost three years and the U.S. producing the most in three decades, the refiners are showing little concern that prices will suddenly surge. Japan’s JX Nippon Oil & Energy Corp., South Korea’s SK Innovation Co. and Indian Oil Corp. are among the processors seeking to boost profits by purchasing more in the spot market while shrinking what they buy under long-term contracts where prices are generally higher.