Glencore, Taiwan refiner book tankers for Middle East oil after ceasefire

Glencore Plc, the Swiss mining commodities group, and Taiwan’s state-owned refiner CPC have each chartered a tanker to load Middle Eastern crude for Asia, as vessels in the Gulf prepare to sail through the Strait of Hormuz a day after a ceasefire between the United States and Iran. 

The truce, now in its second week, depends on safe passage through the strait, a key route for roughly one-fifth of global oil and liquefied natural gas shipments. Flows had slowed sharply during six weeks of fighting, pushing up energy prices and tightening supplies. 

Asian refiners depend on the Middle East for more than half of their crude and naphtha needs, making a quick return to normal shipping critical for fuel and petrochemical production. 

Governments across the region have tapped emergency reserves, expanded subsidies and, in some cases, restricted fuel exports to cushion the impact of the disruption. 

Taiwan Economy Minister Kung Ming-hsin said Thursday that CPC had secured a tanker to lift about 2 million barrels of crude from the Gulf. 

“If passage is possible within the next two weeks, it can arrive,” Kung told reporters. He said the cargo would cover more than two weeks of Taiwan’s average daily consumption of about 150,000 barrels, offering some relief to the market.

Glencore secures Suezmax for Basra exports

Oil companies and traders moved quickly to secure shipping capacity after news of the ceasefire broke. 

Glencore has provisionally chartered a Suezmax tanker to load from Iraq’s Basra Oil Terminal, according to two shipping sources. The vessel, which can carry about 1 million barrels, is already in the Gulf, one of the sources said. 

An earlier attempt by the company to book a very large crude carrier was unsuccessful, the sources added. 

Producers in the Middle East, including Iraq, are preparing to raise exports once traffic through the strait resumes more fully. 

Shipping costs remain elevated. Spot rates for very large crude carriers on the Middle East-to-Asia route have more than doubled from levels seen before the conflict, according to LSEG data. 

A Singapore-based trader said rates are likely to stay high in the near term, citing strong demand, higher insurance costs tied to security risks and a limited number of available vessels. Some tankers had already been repositioned to the Americas during the disruption.

Oil ships move toward Hormuz

Ships that had been waiting in the Gulf are beginning to move closer to the Strait of Hormuz. 

Tracking data showed several large crude carriers, including vessels flagged in China and India, adjusting positions as operators prepare to resume voyages. Others made brief stops at ports in the United Arab Emirates to take on additional cargo. 

Even so, some shipowners remain cautious. Industry participants said clearer guidance on the terms of the ceasefire is needed before normal traffic fully resumes, particularly after Iran said vessels may still require permits to pass. 

Iran’s Revolutionary Guards navy has published guidance on alternative routes within the strait to help ships avoid potential hazards, according to local media.

Glencore, CPC roles and Quebec talks

Founded in 1974, Glencore operates in more than 30 countries and trades a wide range of raw materials used across the energy and industrial sectors. Under Chief Executive Gary Nagle, the company has maintained a large trading business while expanding its focus on metals such as copper, nickel and cobalt, which are used in electric vehicles and renewable energy systems. 

CPC Corporation, Taiwan, established in 1946, is the island’s main state-owned energy company. It oversees the exploration, refining and distribution of petroleum and natural gas products. 

Separately, Glencore has been in talks with authorities in Quebec, Canada, to help keep the Horne copper smelter operating, a move aimed at preserving jobs and supporting regional supply.