Major fuel company, Pacific Energy has confirmed that at this stage the events in the Middle East have no impact on their supply chain and current oil stocks in the terminal are sufficient to cover customers usual consumption.
They say regarding supply security, the immediate impact mainly concerns companies without contracts as they are bound by a long-term contract for fuel supply and has its own tankers.
Pacific Energy says consequently, and their medium range tankers supply program is unchanged for the coming months.
They say continued closure of the Strait of Hormuz or significant damage to the means of production or transport of petroleum products are the main risks identified as likely to affect the regularity and continuity of supply to the Asia-Pacific region.
The company says they consider this historic and volatile situation to be serious and, if it persists, it could lead to changes in supply patterns and product availability.
Pacific Energy says beyond the short-term consequences and uncertainties for supply, the effects on prices are already being felt.
The de facto closure of the Hormuz Strait since March 2 has halted oil exports from the Gulf of Arabia, tightening global supply. On March 12th, the International Energy Agency announced a record coordinated release of 400 million barrels of emergency oil stocks, although the impact on supply and prices remains unclear.
On the same day, China’s National Development and Reform Commission instructed major refiners to halt or significantly limit refined fuel exports, further tightening fuel supply in the Asia-Pacific region.
As a result, global fuel prices have surged, with automotive gas oil exceeding its previous record and approaching US$195 per barrel, while jet fuel prices have risen by about US$50 to around US$210 per barrel.
Pacific Energy says this increase affects and will affect local prices in the coming weeks.
They say Week 11 compared to Week 10 shows increases across all categories.
The average maximum operating pressure for AGO10 increased by US$45.88 per barrel, while the average maximum operating pressurefor ULP91 rose by USD 29.41 per barrel.
The average maximum operating pressure for PULP95 increased by US$36.01 per barrel.
Freight costs also rose, with the average maximum operating pressure increasing by US$4.08 per metric tonne.
