Vietnam makes its 1st US oil purchase of the year
What's the story
Vietnam's Binh Son Refining and Petrochemical (BSR) has made its first US oil purchase of the year, buying one million barrels of West Texas Intermediate (WTI) crude for delivery in November. The light-sweet crude was purchased from Mercuria. This deal marks a significant shift as BSR usually processes domestic crude.
Trade adjustments
Crude oil purchases from US
Vietnam, along with other nations like Indonesia and Thailand, has agreed to buy more US crude oil. These deals were struck with Washington to avoid high tariffs and reduce trade surpluses. The strategic move is part of a broader effort by these countries to strengthen their economic ties with the US while managing trade balances effectively.
Market dynamics
Shift in Vietnam's sourcing
The competitiveness of WTI in Asia has increased for November deliveries, especially after the recent rise in Middle East oil prices. This development is likely to further boost Vietnam's interest in US crude oil. The last time Vietnam imported US crude was in December 2024. The country mainly sourced its crude from Kuwait, Brunei, and Libya.