Six oil ships bound for Australia have been cancelled in recent days but the federal government is not yet considering any drastic measures, the energy minister, Chris Bowen, says.<\/p>\n
Bowen said on Sunday that six ships from Malaysia, Singapore and South Korea, that had been expected to arrive next month, were cancelled or deferred. The federal government was working to replace the ships, with some already substituted, the minister told ABC TV.<\/p>\n
Australia receives about 80 shipments of oil each month, on average, predominantly from Asia. On Friday, Reuters reported record amounts<\/a> of US fuel were being exported to Australia amid supply chain disruptions.<\/p>\n Sign up for the Breaking News Australia email<\/a><\/p>\n \u201cThe flow of oil to Asian refineries has slowed, and that has downward impacts on us,\u201d Bowen said on Sunday.<\/p>\n \u201cWe\u2019re in an uncertain environment, so that\u2019s why we\u2019re doing \u2026 all the preparatory work.<\/p>\n \u201cPeople think \u2018Well, all the ships are coming now, and one day they\u2019ll all stop in one go\u2019. [But] that is highly unlikely to be the case. It\u2019s much more likely that there\u2019ll be bumps in supply, but that governments will work with the refiners and the importers to manage those and minimise impacts.\u201d<\/p>\n Bowen said fuel supplies within Australia were slightly higher than before the crisis began, with 38 days of petrol. There was 30 days supply of diesel and jet fuel.<\/p>\n The weeks ahead could be more challenging with disruptions expected to occur for shipments arriving in late April and May, the minister conceded.<\/p>\n Energy analysts have warned that major producers in Asia, such as Malaysia and South Korea, could cut exports to Australia to prioritise domestic fuel needs.<\/p>\n Kevin Morrison, an energy finance analyst at the Institute for Energy Economics and Financial Analysis, said on Friday that a warning from Malaysian officials<\/a> that the crude oil supplier would \u201cprioritise\u201d its own needs was \u201creally significant\u201d.<\/p>\n \u201cSouth Korea, Japan and India are all very vulnerable. They hardly produce any oil so they are all very dependent on oil imports,\u201d he said.<\/p>\n \u201cIf they are facing the situation where crude oil supplies are declining, and there\u2019s no sign of the conflict ending, obviously they would prioritise their domestic markets over exports.\u201d<\/p>\n Bowen ruled out invoking fuel rationing laws, which haven\u2019t been used in decades<\/a>, in the short term.<\/p>\n \u201cIt\u2019s not designed to be invoked lightly,\u201d he said on Sunday. \u201cWe are not contemplating at this point needing to use any of those powers \u2026 we\u2019re sending the message to Australians that, please buy as much fuel as you need, but no more.\u201d<\/p>\n