APAC energy producers to gain, refiners to face cost pressure amidst Iran conflict

Energy exporters in Australia, Indonesia and Malaysia could see stronger revenues.

Asia-Pacific (APAC) energy producers could benefit from higher oil and gas prices if the Iran conflict prolongs disruption to Gulf energy supply and shipping, whilst refiners and petrochemical manufacturers may face higher feedstock costs, according to Fitch Ratings.

Energy exporters in Australia, Indonesia and Malaysia could see stronger revenues as global prices rise in response to supply risks linked to the conflict.

Refiners and petrochemical manufacturers across the region may face margin pressure as higher crude prices increase feedstock costs.

Profitability could weaken if companies are unable to pass through higher input costs to customers quickly.

The regional impact reflects APAC’s position as both a major exporter of energy commodities and a key refining and petrochemical manufacturing hub within global energy supply chains, Fitch said.