China’s move comes as refiners in Asia, Middle East cut outputAustralia, Bangladesh, Philippines reliant on Chinese fuelChina is fourth-largest fuel exporter in AsiaChina is a...
Anwar wins bid to strike out legal challenge over PM and Tambun MP posts, judge rules Waytha Moorthy has no caseChina’s ban on exports of diesel, gasoline and jet fuel is poised to exacerbate fuel shortages and further boost prices for Asian industry and transportation buyers already grappling with tightening supplies caused by the US-Israeli war against Iran.
— Reuters picand enjoy FREE RM10 & when you sign up using code VERSAMM10 with min. cash of RM100 today! T&Cs apply.Australia, Bangladesh, Philippines reliant on Chinese fuelBEIJING, March 18 — China’s ban on exports of diesel, gasoline and jet fuel is poised to exacerbate fuel shortages and further boost prices for Asian industry and transportation buyers already grappling with tightening supplies caused by the US-Israeli war against Iran. Even before the ban, Asian refiners were scrambling to secure alternative crude shipments while several refineries in the Gulf, many of which ship fuel to Asia, have shut since the war halted shipping via the critical Strait of Hormuz route. China, the world’s top oil importer, last week banned fuel exports until at least the end of March, in an attempt to pre-empt domestic shortages, sources said, curbing exports that last year totalled US$22 billion . Australia, Bangladesh and the Philippines are especially reliant on Chinese fuel supply and will have to cover their needs elsewhere.It is also home to the world’s largest refining sector and is known as a swing supplier, with exports picking up when local demand dips and export margins are attractive. Beijing has long limited China’s fuel exports with quotas, but an outright ban poses a new challenge and climbing prices already reflect that. “The remaining Asian exporters simply do not have the spare volumes to replicate China’s role as the region’s swing supplier,” Kpler analyst Zameer Yusof wrote. “As a result, Singapore cracks will likely continue grinding higher in the near term as the market adjusts via replacement barrels or outright demand destruction,” he said, referring to benchmark refining margins in the Asian hub. Diesel derivative prices in Asia surged to US$150 a barrel on March 17 while jet fuel swaps were at US$163 a barrel, soaring from around US$92 before the war, LSEG data showed. GasolineChina supplied about a third of Australia’s jet fuel last year and about half for the Philippines and Bangladesh in 2024. Vietnam has already warned airlines to prepare to cut flights in April due to the risk of shortages posed by fuel export bans. China’s Ministry Of Foreign Affairs, responding to questions about Vietnam’s plan, said on Monday that military action in the Middle East should stop and that Beijing was willing to cooperate with countries on energy security. Chinese state firms PetroChina and Unipec supply fuel to Bangladesh, although such cargoes can be delivered from wherever is economical. Bangladesh sent a letter to the Chinese embassy seeking assurance on its contracted volumes, a minister told Reuters. “I hope they will continue their supplies in this critical time,” said Aninda Islam Amit, Bangladesh’s state minister for Power, Energy and Mineral Resources. Australia’s transport minister said on Monday that airlines Qantas and Virgin were well placed to withstand war-related fuel disruption and there were no short-term supply issues.In addition to China, Thailand has banned most exports of refined fuel and heavyweight South Korea has limited exports to last year’s levels and said it was considering further curbs. Priti Mehta, senior research analyst at consultancy Wood Mackenzie, said last week that refiners in India and Japan were also becoming reluctant to issue export tenders. With several Asian refiners cutting output, the war could force up to 6 million barrels per day of crude run cuts across Asia, WoodMac said. To be sure, Singapore inventories of light distillates, including gasoline and naphtha, remain 19 per cent above year-ago levels and refiners in top regional exporter India and elsewhere are likely to step up sales to Asia to profit from rising prices. “More of India’s transport fuel exports will divert towards Asia instead of the West such as Europe and the Americas,” said Vortexa’s head of Asia-Pacific analysis Ivan Mathews.But even before China’s move, ExxonMobil had chartered up to three shipments of gasoline from the US Gulf Coast to Australia for arrival in late April, an unusual and expensive routing that underscores the impact of the war’s disruption. — Reuters
Asian Fuel Shortages U.S.-Israeli War Strait Of Hormuz Singapore Refining Margins Asia-Pacific Energy Security
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