Home › Forums › Coking › News: DCU, Upgrader › 1.Coker (registered users only) › Asia-Wide Refinery Output Cut Causes Marine Fuel Oil Shortage (Global?) › RE: Asia-Wide Refinery Output Cut Causes Marine Fuel Oil Shortage (Global?)
FYI – this will likely cascade into Global Bunker & Asphalt markets since most Global refinery capacity is also cutback to min levels – fortunately it is near middle of peak shipping and paving markets and nto the beginning.
Although this will produce a price spike it is unlikely to yield any additional supply since the bottom products are alls less than the price of crude oil – not a good position when margins are bad enough to have some of higher cost & smaller refineries sutting down globably. Hi prices often go along with low supply.
I saw an earlier news item also about Kuwait cutting back crude & products into China. This also feeds some of smaller independent China Fuel Oil & Asphalt producers, which will also amplify some demand increase.
It goes without saying that what increases HFO,Asphalt & ect prices will be bad for coker margins since the delta between the upgrade to gas/diesel gets decreased due to higher value of fuel oil products. The same goes f