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Asia Refineries Slashed Output Amid Mideast Oil Crisis
11 Mar
Summary
- Refineries in Southeast Asia cut output due to crude oil shortages.
- The conflict has halted shipments through the Strait of Hormuz.
- Malaysia's Prefchem and Singapore's SRC and ExxonMobil reduced operations.
Refineries across Southeast Asia have been forced to reduce their processing capacity because of a severe shortage of crude oil. This scarcity is a direct consequence of the U.S.-Israeli conflict with Iran, which has disrupted vital shipping lanes. Shipments through the Strait of Hormuz, a crucial artery for a fifth of global oil and gas, have been effectively halted.
Malaysia's Pengerang Refining Co (Prefchem), a joint venture involving Petronas and Saudi Aramco, recently shut down a major crude unit and plans further reductions in derivative units due to insufficient feedstock. Similarly, Singapore Refining Co (SRC) has decreased its refinery runs to about 60% of capacity. ExxonMobil's Singapore facility has also slashed crude processing to around 50% or lower.
