Asian demand for US crude oil is increasing as prices from other suppliers rise amid a global energy crisis. Trading sources said Chinese buyers and their peers from other Asian countries have been snapping up cargoes of American oil for delivery in November and looking for more for December. Soaring gas and coal prices are expected to prompt utilities to switch to their oil-powered units. US WTI has been trading at least $3 per barrel lower than Brent since August.
Analysts said such a discount would accommodate higher US crude exports. Analysts expect demand for US oil from Asia and Europe to rise by around 700,000 bpd this winter due to the switch from gas to oil. This means that American refiners will have to compete with their foreign rivals for domestic supplies as the US is also entering its winter heating season.
