Asian oil products prices will be kept on the boil this week by fears of possible disruption to Middle East supplies from any reprisals by the US for last Tuesday's air attacks, traders said yesterday.
Some Asian countries have already announced bans on oil exports for the time being to ensure domestic supplies in case of any prolonged disruption.
Traders said the bans so far had not had affected the regional market.
The Philippines halted all overseas sales of oil products, except for naphtha, while Taiwan's two refiners also suspended exports.
And at least one Japanese refiner, Nippon Mitsubishi Oil Corp, has signalled similar intentions, saying earlier yesterday it would stop signing new oil product export contracts to its main markets in Asia and the US to secure supplies at home.
The refiner, Japan's largest, exported 827,000 barrels of products in August, including jet fuel and gas oil.
Idemitsu Kosan Co, Japan's second-largest oil refiner, said it was also considering restricting oil product exports.
Asia's gas oil market remained slightly oversupplied with three to four Korean cargoes for October lifting still looking for homes. But traders said the overhang could disappear if more refiners decided to suspend exports.
Taiwan's decision to ban exports will see Formosa Petroleum Corp withdraw one to two cargoes a month, while Chinese Petroleum Corp only exports gas oil intermittently.
Regional demand was expected to pick up as players eyed the impending release of Vietnam's fourth-quarter oil products import tender later this week. Vietnam bought 240,000 tonnes of gas oil and 27,000 tonnes of kerosene in the third quarter.
The jet kerosene market was perceived to be firm on limited supplies as Korean refiners start to stockpile ahead of winter.
Traders said big buying had not emerged so far, although the market would keep a close watch on supplies as northern Asia heads into the peak winter demand season.
Supply in the fuel oil market remained snug, with some relief expected from the arrival of arbitrage cargoes at the end of the month.
Three arbitrage cargoes were scheduled to arrive from the US and one from Venezuela. The total volume of the parcels was estimated at 350,000 to 400,000 tonnes.
Traders were also eyeing Vietnam's upcoming import tender for fourth quarter fuel oil. Vietnam bought 189,000 tonnes of fuel oil for third quarter delivery.
China yesterday released a new batch of fuel oil import quotas for six million tonnes, valid between October and April 2002.
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