Japanese refiners may have little option but to increase the ratio of lighter crude oil it purchases in 2020 as global supply of heavy crude is expected to remain tight, industry officials and market sources in Tokyo said.
Market participants have been voicing their concerns over the tight heavy crude supply triggered by US sanctions on Iran and Venezuela, and the industry’s woes deepened after additional supply cuts, to take effect in January, were announced by OPEC and non-OPEC producers.
“The current concern in the crude oil market is the tightening of heavy crude supply,” Petroleum Association of Japan’s President Takashi Tsukioka said.
OPEC, Russia and nine other allies agreed earlier this month, to…
View entirety: Platts