Global supply chain disruptions due to the ongoing Covid pandemic have now affected the American fast-food company McDonald's with several stores in Taiwan running out of hash browns imported from the US. These stores are now planning to suspend sales due to the "unstable global shipping supply."

The company has put up signs in several storefronts announcing the suspensions. Also, the item has been listed as "temporarily unavailable" on its menus. In a statement, the company said, "There is a shortage of hash browns in McDonald's restaurants and sales will be temporarily suspended after they are sold out. We thank customers for their support and we are sorry for the inconvenience."

<a href="https://www.wionews.com/world/diaper-and-crib-shortages-supply-chain-crisis-creates-problem-for-pregnant-women-amid-pandemic-442032">Also read |&nbsp;Diaper and crib shortages? Supply chain crisis creates problem for pregnant women amid pandemic</a>

Not just in Taiwan but McDonald's stores in Japan are also affected as they have been hit by a shortage of fries.

McDonald's Japan said that it would ration French fry orders to small size from January 9 for a period of one month. This is the second time that the stores have been forced to impose such a restriction.&nbsp;

"In addition to the ongoing import delays, a combination of unforeseen circumstances, including cargo hold-ups in Vancouver, disruptions caused by snow and bad weather on the route, is causing further delays in the arrival of shipments," the company said in a statement.&nbsp;

(With inputs from agencies)

Global supply chain disruptions due to the ongoing Covid pandemic have now affected the American fast-food company McDonald's with several stores in Taiwan running out of hash browns imported from the US.

Global supply chain disruptions due to the ongoing Covid pandemic have now affected the American fast-food company McDonald's with several stores in Taiwan running out of hash browns imported from the US. These stores are now planning to suspend sales due to the "unstable global shipping supply." The company has put up signs in several storefronts announcing the suspensions. Also, the item has been listed as "temporarily unavailable" on its menus. In a statement, the company said, "There is a shortage of hash browns in McDonald's restaurants and sales will be temporarily suspended after they are sold out. We thank customers for their support and we are sorry for the inconvenience." Also read | Diaper and crib shortages? Supply chain crisis creates problem for pregnant women amid pandemic Not just in Taiwan but McDonald's stores in Japan are also affected as they have been hit by a shortage of fries. McDonald's Japan said that it would ration French fry orders to small size from January 9 for a period of one month. This is the second time that the stores have been forced to impose such a restriction. "In addition to the ongoing import delays, a combination of unforeseen circumstances, including cargo hold-ups in Vancouver, disruptions caused by snow and bad weather on the route, is causing further delays in the arrival of shipments," the company said in a statement. (With inputs from agencies)

No more fries and hash browns? Global supply crisis affects McDonalds' menu

An attack on Saudi oil facilities on Saturday is believed to have disrupted half the country's production capacity, making the United States the only real holder of the global supply cushion via its ability to raise own output or to soften sanctions against other major oil producers.

<a href="https://www.wionews.com/world/oil-rises-as-saudi-signals-opec-cuts-to-continue-under-new-minister-248572">Saudi Arabia</a> has yet to comment on the extent of damage on its <a href="https://www.wionews.com/business-economy/oil-edges-down-on-lower-demand-outlook-us-china-trade-dispute-242428">oil production</a> but industry sources have said some 5-6 million barrels per day (bpd) or 5-6 per cent&nbsp;of global supply has been affected.

Saudi Arabia, the <a href="https://www.wionews.com/business-economy/opec-cuts-2020-oil-demand-forecast-urges-effort-to-avert-a-new-glut-249037">Organization of the Petroleum Exporting Countries</a>' de-facto leader and largest producer, has been long seen as the custodian of the world's spare oil capacity.

Spare capacity is the extra oil a producing country can bring onstream and sustain at short notice, providing global markets with a cushion in the event of natural disaster, conflict or any other cause of an unplanned supply outage.

Industry sources have said Saudi Arabia will be able to restore supply within days.

A prolonged supply outage will have a major bullish impact on oil prices, which in turn will spur further gains in the US&nbsp;shale production.

The <a href="https://www.wionews.com/business-economy/us-briefly-overtakes-saudi-arabia-as-top-oil-exporter-international-energy-agency-249182">United States has briefly overtaken Saudi Arabia</a> as the world largest crude exporter this year, only a few years after removing a ban on oil exports because of large needs at home as the world's largest oil consumer.

Analysts have repeatedly underestimated US&nbsp;output growth gains with the country now producing around 15 per cent&nbsp;of global supply.

Besides the United States, the only countries which have significant spare capacity are Iran and Venezuela.

Both are subject to US&nbsp;sanctions and have seen their exports reduced to a trickle over the past year as US&nbsp;President Donald Trump has tightened sanctions.

Iran has seen its exports falling by over 2 million bpd since the sanctions have been imposed and Venezuela have seen its exports plummeting too.

While analysts expect Venezuelan production to more or less stabilising at current levels of around 700,000-800,000 bpd for the rest of the year, Iranian oil production is forecast to fall further.

Energy Aspects has said it expects OPEC spare capacity to fall to below 1 million bpd in the fourth quarter from two million bpd in the second quarter of 2019.

WILDCARDS

OPEC member Libya is in the middle of a civil war, which threatens its ability to continue pumping oil. Another big Libyan disruption would add to the shocks and highlight the spare capacity problem.

Nigerian exports have also suffered big from disruptions.

Meanwhile, US&nbsp;crude oil production is expected to rise to new records.

However, large US&nbsp;crude output gains and slowing global demand because of a weaker global economy have contributed to a rise in oil stocks worldwide.

The International Energy Agency, which coordinates energy policies of industrialised nations, said on Saturday the markets were still well supplies despite the Saudi disruptions.

"We are massively oversupplied," said Christyan Malek, head of oil and gas research for Europe, Middle East and Africa at J.P. Morgan, adding it would take five months of a 5 million-bpd outage to take global crude supply levels back to a 40-year normal average.

"Having said that, this attack introduces a new, irreversible risk premium into the market," he added.

An attack on Saudi oil facilities on Saturday is believed to have disrupted half the country's production capacity, making the United States the only real holder of the global supply cushion via its ability to raise own output or to soften sanctions against other major oil producers.

An attack on Saudi oil facilities on Saturday is believed to have disrupted half the country's production capacity, making the United States the only real holder of the global supply cushion via its ability to raise own output or to soften sanctions against other major oil producers. Saudi Arabia has yet to comment on the extent of damage on its oil production but industry sources have said some 5-6 million barrels per day (bpd) or 5-6 per cent of global supply has been affected. Saudi Arabia, the Organization of the Petroleum Exporting Countries' de-facto leader and largest producer, has been long seen as the custodian of the world's spare oil capacity. Spare capacity is the extra oil a producing country can bring onstream and sustain at short notice, providing global markets with a cushion in the event of natural disaster, conflict or any other cause of an unplanned supply outage. Industry sources have said Saudi Arabia will be able to restore supply within days. A prolonged supply outage will have a major bullish impact on oil prices, which in turn will spur further gains in the US shale production. The United States has briefly overtaken Saudi Arabia as the world largest crude exporter this year, only a few years after removing a ban on oil exports because of large needs at home as the world's largest oil consumer. Analysts have repeatedly underestimated US output growth gains with the country now producing around 15 per cent of global supply. Besides the United States, the only countries which have significant spare capacity are Iran and Venezuela. Both are subject to US sanctions and have seen their exports reduced to a trickle over the past year as US President Donald Trump has tightened sanctions. Iran has seen its exports falling by over 2 million bpd since the sanctions have been imposed and Venezuela have seen its exports plummeting too. While analysts expect Venezuelan production to more or less stabilising at current levels of around 700,000-800,000 bpd for the rest of the year, Iranian oil production is forecast to fall further. Energy Aspects has said it expects OPEC spare capacity to fall to below 1 million bpd in the fourth quarter from two million bpd in the second quarter of 2019. WILDCARDS OPEC member Libya is in the middle of a civil war, which threatens its ability to continue pumping oil. Another big Libyan disruption would add to the shocks and highlight the spare capacity problem. Nigerian exports have also suffered big from disruptions. Meanwhile, US crude oil production is expected to rise to new records. However, large US crude output gains and slowing global demand because of a weaker global economy have contributed to a rise in oil stocks worldwide. The International Energy Agency, which coordinates energy policies of industrialised nations, said on Saturday the markets were still well supplies despite the Saudi disruptions. "We are massively oversupplied," said Christyan Malek, head of oil and gas research for Europe, Middle East and Africa at J.P. Morgan, adding it would take five months of a 5 million-bpd outage to take global crude supply levels back to a 40-year normal average. "Having said that, this attack introduces a new, irreversible risk premium into the market," he added.

Global spare oil capacity in United States hands after Saudi outage

Asian refining margins for fuel oil are set to hold near their current strong levels through the summer as increased use of the fuel by utilities to power air conditioners for cooling and disruptions to trade flows shrink global supplies.

"Robust power generation demand in the Middle East (notably Saudi Arabia) should result in lower fuel oil outflows from the region," said Iman Nasseri, managing director of energy consultancy FGE's Middle East office.

While fuel oil markets typically strengthen during the northern hemisphere summer months, four trade sources said fuel oil margins have demonstrated additional strength this year by shrugging off sharp gains in crude oil prices, which in mid-May climbed to their highest since November 2014.

The trade sources declined to be identified as they are unauthorised to speak to the media.

"Fears over falling Iranian supply ... structural falls in global supply and a strong seasonal demand uptick in the Middle East for power generation are combining to provide support," Vienna-based consultancy JBC Energy said in a research note last week.

Lower fuel oil output in Venezuela due to refinery outages and a lack of crude oil, and refinery upgrades in Russia, the Middle East, India and South Korea have all contributed to tightening global supplies of the fuel, used to generate electricity and power industrial boilers and ships.

With the fuel oil surplus in the Middle East shrinking this year and next due to increased oil-fired power plant expansions, the region is projected to become a net fuel oil importer by mid-2019, though only for a short period of time, Nasseri said.

Increasing Saudi Arabian power demand amid falling supply from there, the United Arab Emirates and Kuwait underpin the big shift, he said.

The 180-centistoke high-sulphur fuel oil discount to Dubai crude&nbsp;on Monday&nbsp;settled at $3.21 a barrel, with Dubai crude holding above $74 a barrel.

In November 2014, when Dubai crude was last at similar levels, the same fuel oil crack or margin was at a discount wider than $6 a barrel.

Reflecting fuel oil's strength, the Singapore crack was the only one to post gains over the past few weeks, with ample supplies and rising crude prices weighing on other refined fuels, including gasoline and diesel.

"Fuel oil cracks should weaken as we move through (second-half 2018) as seasonal demand support wanes and destocking pressures from a highly backward&nbsp;market ... compensate for growing tightness in the fundamental balance," JBC said.

While strength in fuel oil markets subsides with the passing of peak utility demand, though, some analysts and traders see limited downside for fuel oil in the second half of the year.

In addition to tightening supplies, looming US&nbsp;sanctions on oil exports from Iran - a major fuel oil producer with exports of about 17 million tonnes in 2017 - could further limit fuel oil outflows, mainly to Asia.

Also, expectations of higher crude supplies in the second half of the year amid rising output from producers outside the Organization of the Petroleum Exporting Countries, including the United States and Russia, could weigh on crude prices, potentially lending support to fuel oil cracks.

The trade sources declined to be identified as they are unauthorised to speak to the media

Asian refining margins for fuel oil are set to hold near their current strong levels through the summer as increased use of the fuel by utilities to power air conditioners for cooling and disruptions to trade flows shrink global supplies. "Robust power generation demand in the Middle East (notably Saudi Arabia) should result in lower fuel oil outflows from the region," said Iman Nasseri, managing director of energy consultancy FGE's Middle East office. While fuel oil markets typically strengthen during the northern hemisphere summer months, four trade sources said fuel oil margins have demonstrated additional strength this year by shrugging off sharp gains in crude oil prices, which in mid-May climbed to their highest since November 2014. The trade sources declined to be identified as they are unauthorised to speak to the media. "Fears over falling Iranian supply ... structural falls in global supply and a strong seasonal demand uptick in the Middle East for power generation are combining to provide support," Vienna-based consultancy JBC Energy said in a research note last week. Lower fuel oil output in Venezuela due to refinery outages and a lack of crude oil, and refinery upgrades in Russia, the Middle East, India and South Korea have all contributed to tightening global supplies of the fuel, used to generate electricity and power industrial boilers and ships. With the fuel oil surplus in the Middle East shrinking this year and next due to increased oil-fired power plant expansions, the region is projected to become a net fuel oil importer by mid-2019, though only for a short period of time, Nasseri said. Increasing Saudi Arabian power demand amid falling supply from there, the United Arab Emirates and Kuwait underpin the big shift, he said. The 180-centistoke high-sulphur fuel oil discount to Dubai crude on Monday settled at $3.21 a barrel, with Dubai crude holding above $74 a barrel. In November 2014, when Dubai crude was last at similar levels, the same fuel oil crack or margin was at a discount wider than $6 a barrel. Reflecting fuel oil's strength, the Singapore crack was the only one to post gains over the past few weeks, with ample supplies and rising crude prices weighing on other refined fuels, including gasoline and diesel. "Fuel oil cracks should weaken as we move through (second-half 2018) as seasonal demand support wanes and destocking pressures from a highly backward market ... compensate for growing tightness in the fundamental balance," JBC said. While strength in fuel oil markets subsides with the passing of peak utility demand, though, some analysts and traders see limited downside for fuel oil in the second half of the year. In addition to tightening supplies, looming US sanctions on oil exports from Iran - a major fuel oil producer with exports of about 17 million tonnes in 2017 - could further limit fuel oil outflows, mainly to Asia. Also, expectations of higher crude supplies in the second half of the year amid rising output from producers outside the Organization of the Petroleum Exporting Countries, including the United States and Russia, could weigh on crude prices, potentially lending support to fuel oil cracks.

Asia fuel oil margins to be supported through mid-year on strong demand

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