Core Viewpoint - ExxonMobil, BP, and Vitol are shipping a record volume of oil products to Australia from the United States in March, filling a supply gap due to disruptions from the Iran conflict [1][2][3]. Group 1: Shipping Volume and Sources - At least 200,000 metric tons of gasoline, diesel, and jet fuel are being shipped from the U.S. Gulf Coast and West Coast to Australia, marking the highest volume shipped in over three decades [3][4]. - The journey from the U.S. to Australia takes 30 to 40 days, compared to 10 to 20 days for supplies from Asia [5][8]. Group 2: Market Dynamics - Australia typically relies on Asia for the majority of its fuel imports, with over 90% of refined fuels coming from the region [7][8]. - The current situation has led to increased arbitrage opportunities, with Houston being the cheapest source of gasoline for Australia, approximately $17 a barrel cheaper than from Singapore [9][10]. Group 3: Regulatory and Supply Chain Context - The Australian competition regulator has launched an investigation into potential anti-competitive conduct by major fuel suppliers amid supply chain disruptions [10]. - The Australian government announced plans to release petrol and diesel from domestic reserves to address shortages in rural areas [11].
Exxon, BP, Vitol ship most US fuels to Australia for a single month in three decades, traders say