Via Reuters, ICYMI, the info that Asia crude imports on track for a 22% annual fall to a 10-year low in April as the Hormuz closure forces refinery run cuts.
Via Reuters, ICYMI, the info that Asia crude imports on track for a 22% annual fall to a 10-year low in April as the Hormuz closure forces refinery run cuts. Diesel and jet fuel output losses seen at up to 2 million bpd.
Summary Asia’s crude imports on track to fall 22% year-on-year to 20.4 million bpd in April, the lowest level since 2016, according to Kpler Asian refinery runs fell to 29.4 million bpd in March and are set to slip further to around 28.5 million bpd in April and May Of the nearly 12 million bpd of crude unable to reach Asia in March, around 8 million bpd was medium-sour crude, the grade most Asian refineries are designed to process Light-sweet crude now accounts for 21% of Asia’s crude slate in April, a record high, up from 11% in February Middle East crude typically yields 60% middle distillates versus around 40% for WTI, compounding the diesel and jet fuel shortfall Total middle distillate supply losses in April estimated at 1.8 to 2.0 million bpd by Kpler, most of that diesel China has curtailed fuel exports to preserve domestic supply; throughput fell to 13.4 million bpd in the week to April 17, down from 15.4 million bpd before the war Refinery utilisation rates in South Korea and Japan expected to fall to 65% in late April and early May, well below normal levels of 70% to 80% Singapore refinery utilisation has averaged below 50%, down from a typical 70% Recovery possible from June but dependent on a resolution to the Hormuz closure Asia’s refining sector is absorbing the deepest crude supply shock in a decade, with the Iran war’s effective closure of the Strait of Hormuz forcing run cuts across the region and threatening to drain diesel and jet fuel availability by at least 1 million barrels per day in the near term, and potentially as much as 2 million bpd according to some estimates. Asia accounts for 37% of global refining output and ordinarily sources around two-thirds of its crude from the Middle East. The closure of the Hormuz strait…