Loading ...Jack Prandelli
@jackprandelli
Asia’s refineries are built for Gulf crude
That’s exactly what’s disappearing from Hormuz right now
You can’t just swap in US Light Sweet.
It doesn’t run the same way.
Why there’s no easy substitute:
→ #Russia: Already maxed out, can’t scale further
→ US Light Sweet: Wrong grade for Asian refineries
→ #Venezuela Heavy: Extra-heavy, rarely goes to Asia
→ #Canada Heavy: 96% to US, not exported to Asia
The reality is that Asia doesn’t just need oil.
Asia needs Medium and Heavy Sour crude from the Gulf.
And right now:
→ The Strait is 80% closed
→ Refineries are burning
→ Producers are declaring force majeure
→ Tankers won’t enter the Gulf
You can’t replace it barrel for barrel because refineries are built for specific grades.
When those grades disappear, the system breaks.
