Authored by Tsvetana Paraskova via OilPrice,
- Asia’s crude imports have nearly recovered to pre-war levels, reaching 26.39 million bpd in October, while refined fuel imports remain 10% below pre-war volumes.
- Diesel shortages persist despite recovering crude flows, as damaged Middle Eastern refineries, Russian supply disruptions and reduced fuel shipments keep refining margins elevated.
- The global diesel crunch could extend well into 2027, with deferred refinery maintenance and uncertain Chinese exports threatening to prolong supply shortages.
While crude oil imports in Asia have reached pre-war levels, imports of refined products remain weak as gasoline and diesel imports from the Middle East have crashed amid reduced refining capacity.
Asia's oil import story these days is a reflection of the global oil markets - crude oil availability has significantly increased since the early summer lows and flows out of the Middle East have largely recovered, but supply of gasoline, and especially diesel, has sharply dropped since the Iran war began at the end of February.
Reduced refinery runs in the Middle East, with some refineries still out following Iranian strikes in the early days of the war, have combined with lower refined product flows through the Strait of Hormuz, due to the much more dangerous ship-to-ship transfers of highly inflammable fuels, to slash supply to the market.
Russia's fuel crunch due to Ukrainian strikes on refineries and the lack of Russian diesel exports have compounded the global diesel problem, sen
