ABSTRACT
The structural shifts in the world oil market continue to evolve, creating an oil market characterized by excess petroleum supplies, weak prices, and fierce competition. In the Asia-Pacific region, the general problems of the global oil industry continue to apply, but with a few twists characteristic of the regional oil market. The regional refineries supplying petroleum products are relatively unsophisticated by world standards. Singapore has become the third largest refining center in the world, thus it is natural that global refining problems affect the Singapore refining industry. In 1980, product trading made up only 10% to 12% of the world petroleum trade; however, by 1987, product trading is expected to account for nearly one-quarter of the world oil trade. Japan accounts for around one-half of regional oil consumption. Japan's product imports are essentially confined to liquefied petroleum gas, naphtha, and fuel oil.
