Oil product prices in the Asian market are expected to get support from possibly less supply from quake-hit Japan.
Japan shut about 30% of refining capacity after quake, as a result of which its oil product output might decline, according to international traders.
Additionally, the country's demand for oil products would rise amid disaster-relief, the traders said.
Due to production suspension of some Japanese refineries, buyers had to purchase oil products from refineries outside Japan, said a source with the Formosa Petrochemical Corporation. South Korean refineries, which had been running at high rates, would become more likely sources, the source denoted.
A source with South Korea's S-Oil said the company saw increasing inquiries for gasoline, gasoil and fuel oil after the earthquake occurred.
Formosa Petrochemical had no excessive resources to supply because of ongoing turnaround, market sources deemed.
China would not likely increase oil product exports in the near term because of domestic shortage, especially gasoline, the sources expected. However, the nation might export more gasoil if prices of the product surged in the overseas market, according to the sources.
A magnitude 9.0 earthquake struck off the northeast coast of Japan in the afternoon of Mar 11, triggering tsunami. Some refineries located in northeast coasts were shut down for safety concerns.
