Asian Refineries Face Challenges Amid Gulf Oil Supply Disruptions

Asian refineries are grappling with supply chain disruptions due to increased military activities and shipping attacks in the Gulf region. According to Jin10, these refineries have traditionally been designed to process heavy, sulfur-rich crude oil from the Gulf, which constitutes about 60% of Asia's oil imports. The current situation has prompted refineries to seek alternative sources, but replacing Gulf oil with supplies from the U.S., Africa, or Brazil presents logistical and technical challenges. Some refineries have already reduced output or delayed deliveries. Energy analysts warn that prolonged disruptions in the Strait of Hormuz could lead to tighter fuel markets across Asia due to mismatches between refinery configurations and available crude grades.