Northeast Asian Fuel Exports to Recover in May
Refiners in South Korea and Taiwan are increasing diesel and jet fuel exports for May as supply constraints ease. Spot premiums have declined from recent peaks.
Spot diesel and jet fuel exports from Northeast Asia are projected to recover throughout May as regional refiners move to capitalize on record-breaking margins and a stabilization in crude oil supplies. While volumes remain below levels seen prior to the conflict involving Iran, recent data indicates a significant uptick in activity from major refining hubs.
Refiners in South Korea and Taiwan have successfully offloaded more middle distillate cargoes for May loading than in the previous month. This surge comes as refining margins in the Asia Pacific reached historic highs, peaking near $60 a barrel earlier this month. The increased outflow of fuel is expected to provide much-needed relief to spot premiums, which had spiked following supply disruptions in the Strait of Hormuz.
