|SThe largest changes in refinery utilization
regionally seem to be in Asia, but Asia is not one homogeneous market.
|SThe Asian oil product market can be broken
into four types of countries:
countries; Japan has declining demand and refinery closures; Korea has low
|(2) High growth
countries such as China and India, which have historically developed domestic
refining to serve their needs and raised protective tariffs.
| China, where growth has been most dramatic in
2004, has reported crude runs of over 6 MMB/D in recent months.
| At the same time, the latest source available
to us reported a Chinese refining capacity of only 5.2 to 5.4 MMB/D, which
means reported capacity is likely to be lower than actual.
|(3) Rest of Asia/Pacific with modest demand
|(4) The major
export refinery center of Singapore.
|SAsia has also been a net product importer and
a major market for the export refineries in the Middle East.