The Business Times
business-time-50
SUBSCRIBERS

Not-so-sweet deal for Singapore’s refineries as they shift to US, alternative crudes

Variations in density and sulphur content present compatibility challenges

Summarise
google-preferred-sourceAdd BT as a preferred source

Benicia Tan

Published Thu, Apr 23, 2026 · 07:00 AM
阅读简体中文版 (beta)
    • Base oil and bitumen production will be affected by the shifting crude oil mix, while diesel and fuel oil yields will be driven lower, analysts say.
    • Base oil and bitumen production will be affected by the shifting crude oil mix, while diesel and fuel oil yields will be driven lower, analysts say. PHOTO: BT FILE

    [SINGAPORE] The Republic’s refineries face weaker margins and reduced efficiency as they pivot to alternative crude oil feedstocks from the Americas and West Africa to offset disruptions arising from the Middle East conflict.

    While the delivered cost per barrel of light-sweet West Texas Intermediate crude from the US to Singapore currently undercuts the cost of heavier Middle Eastern grades such as Omani crude, “a one-for-one swap isn’t feasible”, said Wang Zhuwei, director of global oil trading research at S&P Global.

    This is because Singapore’s refineries are largely tailored to process a medium-sour oil mix.

    oilIran warOmanMiddle EastSingaporeEnergy & CommoditiesUS-Middle East relationsCommoditiesOil refiningExxonMobilAster

    TRENDING NOW

    Longest-serving chief minister Taib Mahmud’s legacy looms large over Sarawak as a family feud over his estate threatens to expose skeleton’s in the eastern state’s political closet.

    On the board but frozen out: The Taib family feud tearing Sarawak construction giant apart

    ​OCBC head of global consumer financial services Sunny Quek says: “All of us (financial institutions) have a wealth strategy. What’s really going to differentiate one bank from another is the execution."

    OCBC consumer banking chief Sunny Quek aims to double wealth business by 2029

    Thailand’s target is to export seven million tonnes of rice globally in 2026, but the Middle East war has turned the world topsy-turvy with supply disruptions, high oil prices and economic uncertainty.

    Thai and Vietnamese farmers may stop planting rice because of the Iran war. Here’s why

    Hengli Petrochemical's refining complex in China's Dalian in 2018.

    Hengli’s ex-Singapore unit dismisses staff after US sanctions, at risk of being wound down: sources

    Latest T-bills Treasury Bills Results & Interest NewsLatest SSB Singapore Savings Bonds NewsLatest COE Certificate of Entitlement News
    Latest Johor-Singapore SEZ NewsLatest BTO Build To Order & Sales of Balance NewsLatest STI Straits Times Index NewsLatest SGX Dividends, Share Price NewsLatest Bonds Market NewsLatest Singapore Stocks To Buy NewsLatest Singapore Economy News
    View More