26-33% of Japanese Refining Capacity Still Offline

As much as 1/3rd of Japanese refining capacity is still offline, lending to strength in gasoline, diesel and kerosene (heating oil) prices. Two of the biggest refineries, JX and Cosmo, should see sustained outages due to fires. Refineries at Tonen General and Kyokuto Petro should be able to restart, once power is restored.

At the present, current refining loss represents 4% of Asian capacity, 1.2% worldwide. Potential sustainable loss in refining capacity is projected to be around 9%.

Related: Japanese utilities have stated they may restart thermal power plants, which would further tighten supplies for refined crude.