Market Outlook
Press

Asian refiners struggle to replace Middle East oil, face output cuts

Cross BarrelCrudeDieselDistillateFreightFuel OilGasolineJetNaphtha
Analyst briefsChart packsDeep divesEventsOpinionsPodcastsPressWebinarsWhitepapers
Published04 MAR 26 - 12:48 Reading time  minutes
“Run cuts will be necessary to maintain refining runs for as long as it takes before stocks run off or if the oil is flowing again from the Strait of Hormuz,” said ⁠June Goh, ​a senior analyst at Sparta Commodities. Typically, refineries can reduce intake by 20% ​to 30% from nameplate capacity, she added.

Reuters, March 4, 2026 – Asian refiners may cut output as the U.S.–Iran conflict disrupts shipments through the Strait of Hormuz, a key route for Middle Eastern crude. Replacement barrels from Brazil, West Africa, and the U.S. are slow and costly to secure due to long voyages and higher freight rates, pushing up crude premiums. Analysts expect refiners to reduce runs by about 5% to 30% until supply flows stabilize.

Author

June Goh

Senior Oil Analyst

Rate this article

Average rating / 5. Vote count:

No votes so far! Be the first to rate this post.

Continue reading

  • New
  • Analyst brief
  • Cross Barrel

G7 SPR release plus short-term crude pressure; buying opportunity on diesel cracks

G7 SPR release plus short-term crude pressure; buying opportunity on diesel cracks,

05 OCT 26 - 16:42

  • New
  • Chart pack
  • Cross Barrel

APAC Chart Pack October 2026

Freight chaos is crushing refining margins. Here's what traders should watch.

05 OCT 26 - 14:06

  • New
  • Press
  • Cross Barrel

Oil swings with focus on deep Saudi price cut and Yemen fighting

“Pipeline, refinery and loading infrastructure remain vulnerable to attacks by the Houthis,”...

05 OCT 26 - 09:47

  • New
  • Analyst brief
  • Distillate
  • Gasoline

Asia Middle Distillates & Gasoline – Pricing Analyst Update (25 Sep–2 Oct)

Asia Middle Distillates & Gasoline – Pricing Analyst Update (25 Sep–2 Oct).

05 OCT 26 - 09:28

subscribe_cta_image

Get forward-looking insights straight to your inbox

Subscribe