Sources say that a growing number of refineries in Southeast Asia, who are dependent on Middle East oil for their production, have reduced output due to the U.S./Israeli war against Iran. Sources say that the conflict has halted all shipments across the Strait of Hormuz. A fifth of world oil and LNG normally travel along Iran's coastline. Producers have also run out of storage space and stopped pumping.

Malaysia's Pengerang Refining Co (Prefchem), a joint venture between Petronas and Saudi Aramco, shut its 300,000-barrel-per-day crude unit last week and plans to ?halt more of its derivative units soon due to a lack of crude feedstock, six sources with knowledge of the matter said. The plant was reportedly running at only 50% capacity.

Five other sources confirmed that Singapore Refining Co. (SRC) has reduced refinery runs on its Jurong Island site, which produces 290,000 bpd, to around 60% from the previous 75%, according to one source.

ExxonMobil, the U.S.-based major, has cut its crude runs at the Jurong Island refinery to 50% or less from 80% or higher, according to three separate sources who are familiar with the situation. This is due to delays in crude deliveries from the Middle East.

Kpler ship tracking data revealed that the refinery in Singapore sourced around 65 percent of its crude this year via the Strait of Hormuz.

Exxon refused to comment. Prefchem, a company that focuses on exports, did not reply to a comment request. SRC also did not respond to a request for comment.

PREFCHEM PLANNING MORE SHUTDOWNS

Two of six sources familiarized with Prefchem's plans say that the company is planning to shut down its steam cracker, which produces 1.2 million tons per year, this week. This comes after the company halted operations at its residual fluid catalytic?cracker gasoline-making plant, which produces 70,000 tons per year, in recent days.

Kpler's shiptracking data revealed that Prefchem imported more than 70% of its crude oil via the Strait of Hormuz last year. Prefchem closed its other gasoline-making facility for repairs last month.

SRC MAINTAINING RADIUS RUNS

Two of five sources familiar with SRC's plans said that SRC will likely maintain "reduced" runs until the end of the month due to the delayed delivery of crude import cargoes.

SRC has delayed or cut off March naphtha supplies to at least two of the five individuals, as well as two other sources.

Kpler data shows that the refinery imported 179,000 barrels of crude oil per day via the Strait of Hormuz in 2013. According to traders, it imports around 6 million barrels of crude oil per month.

SRC is a joint venture 50/50 between PetroChina Singapore?Petroleum Company Ltd and U.S. giant Chevron. SRC is a 50/50 joint venture between PetroChina's Singapore?Petroleum Co Ltd and U.S. major Chevron.

(source: Reuters)