Six fuel ships bound for Australia cancelled as Bowen concedes ‘flow of oil to Asian refineries has slowed’ | Petrol prices
Energy minister Chris Bowen said six oil carriers bound for Australia had been canceled in recent days but the federal government was not yet considering any drastic action.
Six ships expected to arrive next month from Malaysia, Singapore and South Korea have been canceled or delayed, Bowen said Sunday. The federal government is working to replace the ships and some have already been replaced, the minister told ABC TV.
Australia receives an average of around 80 oil shipments each month, mainly from Asia. on Reuters on Friday record amounts reported Due to supply chain disruptions, most US fuel was exported to Australia.
“The flow of oil to Asian refineries has slowed down and this is affecting us negatively,” Bowen said on Sunday.
“We are in an uncertain environment, so we are doing all the preparatory work.
“People think, ‘All the ships are coming now and one day they will all stop at once.’ [But] This is unlikely to be the case. “It is much more likely that there will be fluctuations in supply, but governments will work with refiners and importers to manage these and minimize impacts.”
Bowen said fuel supplies in Australia were slightly higher than at the start of the crisis, with 38-day petrol available. There was a 30-day supply of diesel and jet fuel.
The minister acknowledged that the coming weeks may be more challenging due to disruptions expected to occur in incoming shipments in late April and May.
Energy analysts have warned that major producers in Asia such as Malaysia and South Korea could cut exports to Australia to prioritize domestic fuel needs.
Kevin Morrison, an energy finance analyst at the Institute for Energy Economics and Financial Analysis, said Friday that Malaysian officials’ warning that the crude oil supplier would “prioritize” its needs was “really important.”
“South Korea, Japan and India are very vulnerable. They produce almost no oil, so they are all very dependent on oil imports,” he said.
“If they face a situation where crude oil supplies are decreasing and there is no sign of an end to the conflict, they will obviously prioritize their domestic markets over exports.”
In the short term, Bowen ruled out implementing fuel rationing laws that have been unused for decades.
“It’s not designed to be called lightly,” he said Sunday. “We do not anticipate needing to use any of these powers at this time… We are sending this message to Australians: Please take as much fuel as you need, no more.”
The energy minister said it would be “sensible” for Australians to minimize their fuel use by working from home where possible, in line with advice from global energy watchdog the International Energy Agency.
Australia has two oil refineries of its own and Bowen said they were operating at “full steam”. They refine approximately 20% of the country’s domestic fuel.
Last Thursday, Bowen announced that an additional 519 million liters of gasoline and diesel from reserves had been put on sale and would be diverted to the Australian region.
New National leader Matt Canavan has called on the federal government to consider oil drilling in the Great Australian Bight.
In a statement last week in which he copied Donald Trump’s “baby drill” slogan, Canavan said that if Australia did not launch new oil projects in the Bight and elsewhere, “we will always be at the mercy of unstable regions and international conflicts.”
