Australia Draws Oil Products from US and Europe to Replace Cancelled Asian Cargoes
Australia is drawing oil products from the US and Europe to replace cancelled Asian cargoes, as regional export curbs, refinery run cuts, and conflict-related disruptions tighten supply and extend voyage times for importers.
The Export Finance and Insurance Corporation Act passed through the Australian parliament yesterday, giving government agency Export Finance Australia new authority to underwrite additional cargoes of critical imports, including fuel and fertilizer, because rising risk premiums are challenging independent importers. A surge in demand from panic buying shortly after the war started has added to the urgency to replace cancelled cargoes as service stations across the country have run out of fuel, especially in regional areas.
Long Haul Flows Rise from the US
At least eight tankers loaded in the US are currently en route to Australia, vessel tracking data from Vortexa show, comprising six gasoil cargoes and two gasoline shipments. Combined, the vessels are carrying more than 2.3mn bl of diesel and just over 600,000 bl of gasoline (see table). Three of the diesel cargoes were loaded at Phillips 66’s 105,000 b/d Ferndale refinery on the US west coast, while one gasoline cargo was shipped from ExxonMobil’s 612,000 b/d Beaumont refinery on the US Gulf coast and a gasoil cargo was loaded at Valero’s 135,000 b/d Meraux refinery in the US Gulf.
Australia Draws Gasoil from Europe
Australia is set to import a rare gasoil cargo loaded via ship-to-ship transfer in the Amsterdam-Rotterdam-Antwerp (ARA) region to replace lost Asian supply. The Long Range 2 (LR) tanker STI Solace is transporting 707,100 bl of gasoil to Botany Bay near Sydney for early May arrival, having loaded via ship-to-ship (STS) transfer from the 115,000dwt Oslo Star in the North Sea on 19 March according to Vortexa and Kpler. The STI Solace may have been chartered by ExxonMobil or BP, market sources said.
Asian Supply Remains Constrained
Arrivals of gasoil into Australia fell by nearly 1.47mn bl in March compared with January, Vortexa data show (see graph: Australia middle distillates imports in 2026). Gasoline and jet fuel arrivals were down by 0.25mn bl and 1.85mn bl over the same period. April arrivals are on track to be even lower, with a particularly sharp drop expected in gasoil flows. Some late-April loadings could still reach the east coast before month-end, although sailing times from southeast and northeast Asia typically range between 10-20 days. Regional availability has tightened sharply since Beijing instructed refiners to halt exports, further exacerbating the supply crunch.
Original Article: Asia fuel crunch pushes Australia to US, Europe — Argusmedia