Page 4 - AsianOil Week 09 2022

AsianOil COMMENTARY AsianOil

Asian refiners consider

their options

Asian refiners appear to be looking at limited impact from

Russia’s invasion of Ukraine so far, but are increasingly

keen to resume crude imports from Iran

PERFORMANCE ASIAN refiners are considering their next steps in a new report this week that Russian crude
in the wake of Russia’s invasion of Ukraine. Asia exports averaged 4.27mn barrels per day (bpd)
WHAT: is not as exposed to Russian crude as Europe, in 2021, with Europe comprising around 60% of
Asian refiners are eager but still stands to be affected by the conflict as this, while Asia accounted for nearly 35%.
to resume crude imports oil prices rise and dealing with Russia becomes According to the report, Russia’s crude
from Iran. more complicated owing to a growing number of exports to Asia reached 1.44mn bpd in 2021,
sanctions against the country. with 805,000 bpd – or 56% – going to China.
WHY: Against this backdrop, Asian refiners may not Reuters had a higher figure, however, saying
Their exposure to Russian rush to stop doing business with Russia – and that China’s imports of Russian oil had averaged
crude is limited, but they indeed could snap up discounted Russian oil 1.59mn bpd in 2021, accounting for 15.5% of
are affected by rising oil cargoes that have been rejected by other buy- its total crude imports. The Reuters figures also
prices. ers. However, they could still start looking for showed that Russia was the fourth-largest sup-
replacement sources of crude in case those are plier of crude to South Korea in 2021, and the
WHAT NEXT: considered necessary at a later date as the sit- fifth largest seller of oil and gas – in the form of
There is also a possibility uation continues to evolve. And resuming oil LNG – to Japan.
that Asian refiners could imports from Iran now looks like an increas- Regardless of the disparity between the fig-
snap up discounted ingly attractive prospect that could help relieve ures being reported by different outlets, this
Russian crude rejected some of the upward pressure on crude prices. illustrates that enough Russian oil is sent to
by others. Asia for it to have an impact if supplies are
Impact disrupted.
Excluding China, Russian oil only accounts
for 1-6% of imports to Asia, according to S&P Response
Global Platts. However, even 1-6% of total Following the Russian invasion of Ukraine,
imports is not an insignificant amount. The several countries were quick to respond with
Oxford Institute of Energy Studies (OIES) said sanctions, including the US, the UK, Australia

P4 www. NEWSBASE .com Week 09 04•March•2022