Asian refiners ramp up output to fill supply gaps left by Harvey

1 Sep 2017   Asia

Refiners across Asia are cranking up output to send fuel to the United States, where fallout from Hurricane Harvey has left around a quarter of the nation’s refineries shut down. The storm, which hit Texas a week ago as a hurricane and moved on to Louisiana, has caused historic floods and forced the closure of about a quarter of U.S. refining capacity, equal to about 4.5 million barrels per day (bpd) in output. The resulting supply crunch has caused prices to spike – in gasoline, diesel, jet fuel and other fuels – and not just in the United States. Attracted by soaring refining margins, known as crack spreads in the industry, Asian fuel makers from Singapore to South Korea have ramped up operating rates to sell as many cargoes as possible to the United States. “With crack spreads blowing out, the U.S. is going to need […]

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