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Oil Traders Brace for Asian Refining Cuts as Virus Bites

  • Main hit will be to refined product demand: Morgan Stanley
  • Teapots hardest hit as they’re more exposed to local market
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Oil Prices Not Expected to Rise to Previous Levels, Says Ruehl
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Oil traders in Asia are expecting refineries to cut operating rates and extend shutdowns as the spread of coronavirus stops people from flying or traveling by road.

The slowdown is likely as the profit from making high-value products such as jet fuel, gasoline and diesel are plunging due to travel restrictions, according to four people who trade, supply and refine crude across the region. Independent refiners, or teapots, are likely to be hit the hardest as they’re more exposed to domestic consumption, they said.