Malaise in Top Oil-Consuming Region a Warning Sign for OPEC+ - Bloomberg

Malaise in Top Oil-Consuming Region a Warning Sign for OPEC+ - Bloomberg:

As storm clouds gather over the world’s top oil-consuming region, OPEC and its allies would be advised to pay close attention as they prepare to make a key decision on output curbs early next month.

While the Saudi Arabian-led efforts to restrain supply amid surging North American shale production have hogged headlines, a sense of malaise is quietly creeping across Asia. With the U.S.-China trade war now almost a year old and showing no signs of ending, its impact is manifesting itself in everything from profit warnings by Japanese car makers to sagging Chinese diesel consumption.

From Ulsan in South Korea to Mailiao in Taiwan, the region’s big oil processors are cutting run rates as weak demand for fuel products erode their margins. To make matters worse, a wave of Asian mega-refineries is coming on stream this year, flooding the market with cheap fuel and setting off a price war.