La raffinerie philippine Petron achète 2,48 millions de barils de pétrole russe
Following supply disruptions caused by the Middle East conflict, Petron, the Philippines' only refinery, acquired 2,480,000 barrels of Russian crude oil to prevent a nationwide fuel shortage.
Petron, the Philippines' only refinery, announced Monday it had purchased 2,480,000 barrels of crude oil from Russia, citing "extreme necessity" in a stock exchange filing dated March 27. The purchases followed the cancellation of deliveries of at least four million barrels since the outbreak of the conflict between Israel, the United States and Iran on February 28. The company states it had exhausted "all commercially and operationally viable alternatives" before turning to Russian crude.
De facto closure of the Strait of Hormuz
Iran has effectively closed the Strait of Hormuz, through which 20% of global hydrocarbon production normally transits. Geopolitical pressure on strategic oil shipping lanes extends beyond the Persian Gulf, as illustrated by Tehran's pressure on the Strait of Bab el-Mandeb. The Philippines declared a state of "energy emergency" in response to the scale of the disruptions. President Ferdinand Marcos Jr. indicated that crude oil reserves cover the country's needs through June 30.
Petron justifies the purchase by the risks of halting refinery operations due to lack of crude supply, which would "lead to severe fuel shortages nationwide and a sharp spike in prices." The facility covers 30% of the Philippines' fuel needs. The acquired volumes, combined with existing stocks, would allow Petron to ensure petroleum product supply through June 2026, according to the company.
First vessel already arrived, US sanctions eased
A vessel carrying more than 700,000 barrels of Russian crude oil arrived in the Philippines last week, according to a source familiar with the matter. Russian crude purchases are taking place amid heightened risks on maritime routes, as demonstrated by the drone attack on a tanker carrying Russian oil in the Black Sea. Earlier in March, the United States eased certain sanctions, allowing the purchase of Russian oil currently at sea through April 11.
The Philippine Department of Energy also announced the arrival of 142,000 barrels of diesel ordered by the government, originating from Japan according to Energy Secretary Sharon Garin. Fuel prices have surged across the archipelago, which is heavily dependent on imports, triggering protests by drivers since the start of the conflict.
