Core Viewpoint - Exxon Mobil is set to ship approximately 600,000 barrels of fuel from the U.S. Gulf Coast to Australia, marking the first such shipments since late 2023, amid disruptions in global oil trade due to the Middle East crisis [1]. Group 1: Shipment Details - The shipments will utilize medium-range vessels Largo Eagle and Nord Ventura, which are chartered from Vitol, and are scheduled to load fuel between March 13-16 and March 15-18 [1]. - The cargoes will consist of gasoline, diesel, or jet fuel, and represent the first fuel deliveries from the U.S. Gulf Coast to Australia since December 2023 [1]. Group 2: Market Context - Asian refiners are facing crude supply shortages due to disruptions in the Strait of Hormuz, leading to reduced fuel production and operational cuts [1]. - The charter costs for the vessels are estimated at around $6 million in total, equating to approximately $20 per barrel for the refined products [1]. Group 3: Future Outlook - Traders express skepticism regarding the sustainability of these shipments due to high freight costs and limited vessel availability, with the viability of U.S. to Asia fuel shipments dependent on the ongoing conflict in the Middle East [1]. - Analysts suggest that it may take time for trade flows to normalize even after the crisis, as Asian refiners have reduced run rates and port infrastructure in the Middle East has been damaged [1].

If tensions with the US escalate, Iran could try to close the Strait of Hormuz, disrupting global oil trade. Here's what to know https://t.co/lVNmz7HEyd ...