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Fortunes Start Turning for Asia’s Oil Refiners After Boom Time

  • Some processors review cutting run rates as margins contract
  • Formosa Petrochemical has already trimmed gasoline production

Oil refiners in Asia are starting to mull a reduction in operating rates after running flat out following the blowout in processing margins triggered by Russia’s invasion of Ukraine.

At least three processors in North Asia are considering cutting total run rates from as early as September as profits from turning crude into fuels such as gasoline sank this month, according to company officials, two of which asked not to be identified as the information is private. The third, Formosa Petrochemical Corp., said it has cut gasoline output, and may in turn reduce overall run rates.