The latest Libyan oil disruption shows the situation in the Middle East remains volatile and Asian oil refiners are wary of general escalation in the region. That’s because countries like China, Japan, South Korea, and India, as well as regions like Southeast Asia, have some of the highest dependence on Middle Eastern crude.
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Most Asian countries have insufficient strategic oil reserves to meet contingencies, and the removal of Iranian and Venezuelan supply due to US sanctions has imposed challenges for some refiners East of Suez. However, healthy OPEC supply, new crude suppliers, and weaker oil demand growth leave some breathing room for Asian refiners.
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