Japanese refiners have broken with convention by locking in Middle Eastern crude cargoes a full month ahead of schedule, propelling spot premiums in the Persian Gulf to $38 per barrel.

Eneos Holdings and Idemitsu Kosan have recently purchased Omani crude with the earliest loading dates in October. Traditionally, cargoes procured in September are not scheduled to load until November, making this procurement window a full month earlier than usual. Two cargoes, each of 2 million barrels, were transacted at premiums of $38 per barrel above the Dubai benchmark, with sellers including trading houses and oil majors. Both companies declined to comment.

Domestic refineries Shandong Dongming Petrochemical and Shenghong Group have recently acquired Middle Eastern crude for October and November delivery, while India's state-owned oil company has also tendered for October-loading cargoes. This concentrated wave of Asian demand has driven spot premiums for Persian Gulf crude sharply higher.

The buying spree follows last week's attack on Saudi Arabia's East-West pipeline, which forced its closure. This pipeline, with a daily capacity of approximately 7 million barrels, serves as the critical alternative route bypassing the Strait of Hormuz. Its shutdown has created a potential supply gap of around 4 million barrels per day, roughly 4% of global supply, and Saudi Aramco has already delayed deliveries to some European customers.

Breaking the calendar: a month-early scramble

Eneos Holdings and Idemitsu Kosan have bought Omani crude with the earliest October loading dates, while September purchases of Persian Gulf cargoes typically load in November, marking a procurement shift a full month earlier. Both companies have declined to comment.

This timing change is not an isolated event. Last week's attack forced Saudi Arabia to shut the East-West pipeline, a 1,200-kilometer line traversing the Arabian Peninsula and serving as the key alternative route for moving crude to the Red Sea port of Yanbu, bypassing the Strait of Hormuz. Following the closure, Yanbu's inventory can sustain only five to seven days of export demand, with repair estimates ranging from a few days to five or six weeks.

The two Omani crude cargoes, each of 2 million barrels, were sold at a premium of $38 per barrel over the Dubai benchmark — a margin far exceeding normal levels, directly reflecting the scarcity premium on prompt cargoes. Sellers included trading houses and oil majors.

Amid the supply disruption, Saudi Arabia has redirected export flows from Yanbu back to eastern ports, with Red Sea exports falling by 4.5 million barrels per day in August compared to July, sharply reducing the availability of prompt cargoes. Buyers are paying higher premiums to secure certainty on loading dates.

For Japanese refiners, the simultaneous entry of Asian buyers into the spot market has forced them to pay higher premiums to guarantee cargoes, driving up procurement costs. If Persian Gulf premiums remain elevated, the early cargo-locking behavior among Asian buyers could evolve from isolated cases into a broader trend. Attention now turns to the repair progress of Saudi Arabia's East-West pipeline and whether spot premiums in the Persian Gulf will ease as supply recovers.