Trump says Iran war "close to over" amid hopes for more negotiations
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By Trixie Yap and Shariq Khan
SINGAPORE/NEW YORK, March 19 (Reuters) - ExxonMobil, BP and Vitol are shipping a record volume of oil products to Australia from the U.S. in March, shipping data from trading sources shows, filling a gap left by the loss of regular volumes from Asia as the Iran conflict disrupts supplies.
Australia usually relies on Asia for the vast majority of its oil product imports, but China and Thailand have banned fuel exports to preserve domestic supplies and refiners across the region are cutting output as Iran’s blockade of the Strait of Hormuz sharply cuts crude exports from the Middle East.
Around 240,000 metric tons of gasoline, diesel and jet fuel have been loaded, or will be loaded, by the end of March from the U.S. Gulf Coast and West Coast for shipment to Australia, shipping data from three trade sources shows.
The volume represents the most fuel shipped to Australia from the U.S. for a single month in more than three decades, based on U.S. Energy Information Administration data.
Exxon Mobil booked three ships to load up to 120,000 tons of all three fuels, while BP has chartered two tankers for 80,000 tons of diesel, the data shows, and Vitol is shipping a cargo of 40,000 tons of gasoline.
Vitol and ExxonMobil declined to comment, while BP said it typically does not comment on trading and shipping movements.
The cost of chartering a medium-range tanker to carry around 40,000 tons of fuel from the U.S. to Australia is at least $6 million, two shipbroking sources said, which equates to $150 a ton. The journey to Australia takes 30 days to 40 days, while supplies from Asia typically take 10 days to 20 days.
The three companies operate retail fuel stations in Australia.
HOUSTON’S GASOLINE CHEAPEST FOR AUSTRALIA
Underlining Australia’s vulnerability to the Middle East oil shock, the island holds stockpiles far below global standards and last year imported 84% of its petroleum product needs, government statistics show.
The country imported around 35 million tons of refined fuels in 2025, Kpler shiptracking data showed, of which more than 90% came from Asia.
"There will definitely be more need for these types of (arbitrage) flows," said Sparta Commodities vice president of oil analytics Neil Crosby, adding that the cheapest source of gasoline barrels into Australia now is Houston, followed by the Amsterdam-Rotterdam-Antwerp hub in northern Europe.
More of these arbitrage and trade flows will likely emerge "the longer this crisis goes on" and "the clearer it gets how ’short fuels’ Asia is suddenly becoming", he said.
Gasoline from Houston for May delivery to Australia is around $17 a barrel cheaper than from Singapore, data from Sparta Commodities showed on March 18.
Australia’s competition regulator said on Thursday that it has launched an investigation into allegations of anti-competitive conduct by major fuel suppliers, including Ampol, BP’s Australian unit, Mobil Oil Australia and Viva Energy, in which Vitol is a major shareholder.
This comes after a government announcement last Friday it would release petrol and diesel from domestic reserves to ease supply‑chain disruptions linked to shortages in rural areas.
(1 ton = 7.45 barrels of diesel)
(1 ton = 7.88 barrels of jet fuel)
(1 ton = 8.45 barrels of gasoline)
