Houston, March 5, 2026, 13:30 CST
- Exxon Mobil is lining up a first-ever U.S. Gulf Coast gasoline cargo to Australia, sources say
- Oil and Asian refining margins have jumped as Strait of Hormuz traffic stalls and supplies tighten
- LNG markets are also strained after QatarEnergy declared force majeure and shut gas liquefaction
Exxon Mobil (XOM.N) plans to ship at least 300,000 barrels of gasoline from the U.S. Gulf Coast to Australia to cover its own import requirements there, four sources with knowledge of the matter said. It has booked the medium-range tankers Largo Eagle and Nord Ventura to load in Houston between March 13 and 18 for about 600,000 barrels in total; the last U.S. Gulf-to-Australia gasoline cargo traced by Kpler came from Marathon Petroleum’s Garyville plant in December 2023. Freight is estimated at around $6 million a vessel, or roughly $20 a barrel, and “it will depend heavily on the magnitude and duration of the conflict,” Sparta Commodities analyst James Noel-Beswick said; Exxon did not immediately respond and Vitol declined to comment. 1
The move comes as the U.S.-Israeli war with Iran disrupts supplies and shipping, leaving traders focused on the Strait of Hormuz, a waterway that typically carries around a fifth of global oil flows. Brent crude was up $4.09, or about 5%, at $85.49 a barrel by 1:37 p.m. EST, and “prices will grind higher” while the strait stays closed, Again Capital partner John Kilduff said. 2
Downstream, the squeeze is showing up in refining economics. Singapore’s complex refining margin — the gap between fuel prices and crude — rose to nearly $30 a barrel on Wednesday, while jet fuel and diesel crack spreads climbed to multi-year highs, LSEG data showed. “This is symptomatic of an impending shortage of feedstocks,” Sparta Commodities senior oil market analyst June Goh said. 3
The logistics are getting uglier by the day. At least 200 vessels, including oil and liquefied natural gas tankers, remained at anchor off major Gulf producers, Reuters estimated from ship-tracking data, with hundreds more waiting outside the strait. Commercial war-risk insurance costs have risen at least five-fold, and shipping association BIMCO warned it was unrealistic to protect every tanker operating in threatened waters. 4
Asia’s dependence on the Middle East leaves little cushion. The region imported 14.74 million barrels per day of Middle Eastern crude in 2025, nearly 60% of its total crude purchases, according to Kpler data cited by Reuters, with Japan and South Korea among the most exposed. Singapore lifted its dependence on Middle Eastern oil to more than 70% last year after Exxon completed a refinery expansion that increased demand for heavy crude, the report said. 5
Gas markets are now dealing with the same choke point. QatarEnergy declared force majeure — a clause that excuses contract obligations when events beyond control block deliveries — and sources said it may take at least a month to return to normal production volumes after the shutdown of gas liquefaction. Qatar accounts for about 20% of global LNG exports, and those volumes typically transit Hormuz. 6
Even the biggest exporters have limited room to move. U.S. and Australian LNG plants are running near full capacity and much of the supply is tied up in long-term contracts, Reuters calculations and analysts said. “There is no massive capacity on the sidelines,” said Alex Munton, director of global gas and LNG at Rapidan Energy Group, as Golden Pass LNG — a QatarEnergy-Exxon joint venture — is expected to begin initial production this month on a 6-million-ton-per-year train. 7
But the risks are clear: more attacks, higher costs, and fewer ships willing to take the run. Sonangol Marine Services said a Bahamas-flagged crude tanker, Sonangol Namibe, likely suffered a hull breach after a blast near Iraq’s Khor al Zubair port early Thursday, though it said the ship was stable and there were no reports of pollution. 8
Exxon shares were up about 0.1% at $149.94 in afternoon trade. Traders are watching whether the Australia cargo stays a one-off cover move or turns into a repeat pattern if the shipping standstill drags on.
