Asian refiners, petrochemical firms cut output as crude supply disruptions hit

Several oil refineries and petrochemical companies, particularly in Asia, have reduced operating rates, shut production units, or declared force majeure as the US-Israeli war on Iran disrupts shipping security and global energy supplies.

Asian steam crackers, which import more than 60% of their naphtha feedstock from the Middle East, have moved to declare force majeure to cope with supply shortages. Operators told Reuters they are currently lowering operating rates to carry available feedstock inventories into next month.

Taiwan’s Formosa has declared force majeure on some supplies, while Japan’s Mitsui and Mitsubishi have begun cutting ethylene production. In Singapore, SRC and an Exxon Mobil refinery have reduced operating rates to between 50% and 60%. Shell and its partner CNOOC also plan to shut a cracking unit in China.