Not-so-sweet deal for Singapore’s refineries as they shift to US, alternative crudes

[SINGAPORE] The Republic’s refineries face weaker margins and reduced efficiency as they pivot to alternative crude oil feedstocks from the Americas and West Africa to offset disruptions arising from the Middle East conflict.

While the delivered cost per barrel of light-sweet West Texas Intermediate crude from the US to Singapore currently undercuts the cost of heavier Middle Eastern grades such as Omani crude, “a one-for-one swap isn’t feasible”, said Wang Zhuwei, director of global oil trading research at S&P Global.

This is because Singapore’s refineries are largely tailored to process a medium-sour oil mix.