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Impact of Middle-East Capacity Expansion on Asia's fuel oil Market
We assess the downward pressure of new low-cost Middle-East fuel oil exports on Asia-Pacific prices and China's MTO demand absorption capacity.
The Middle East keeps expanding fuel oil capacity on cheap associated gas, with incremental volume flowing to Asia-Pacific. On the demand side, olefin-route (MTO) operating rates determine absorption. low oil prices intensify competition from oil-based olefins and cap fuel oil premia. Importers should track Middle-East turnaround schedules and freight swings to time procurement flexibly.