IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v11y1986i4p387-403.html
   My bibliography  Save this article

OPEC and Asia: Factors affecting the emerging product trade

Author

Listed:
  • Fesharaki, Fereidun
  • Isaak, David T.

Abstract

The structure of petroleum demand in the Asia-Pacific region is undergoing a fundamental change. Demand for heavy fuel oil in power generation is declining as the oil substitution policies of the regional government proceed. At the same time, the regional refining industry is unable to crack the unwanted fuel oil into lighter products. As a result, a major imbalance between product supply and demand looms ahead. Adding to the imbalance are the new Middle East export refineries, expected to flow between 1985 and 1987, which will probably send 40% of their products into the Asia-Pacific region. Thus, the region is faced with a great increase in product trade at the expense of crude trade, resulting in lower refinery utilization and perhaps some refinery closures. Since Japan may not be willing to open its market to product imports, the large flow of product will result in depressed product prices and a weak market. Although the imbalances in the system may be troublesome for some governments and the industry, they also present many trading opportunities. This paper discusses the factors that affect product trade in the region.

Suggested Citation

  • Fesharaki, Fereidun & Isaak, David T., 1986. "OPEC and Asia: Factors affecting the emerging product trade," Energy, Elsevier, vol. 11(4), pages 387-403.
    • Handle: RePEc:eee:energy:v:11:y:1986:i:4:p:387-403
    DOI: 10.1016/0360-5442(86)90125-8
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/0360544286901258
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/0360-5442(86)90125-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:11:y:1986:i:4:p:387-403. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.