3) The Prices Reflect Petroleum Product Supply Capability and Demand in Asia. Although Singapore’s total refining capacity is 1.5 million barrels per day, which is lower than that of China, Japan and South Korea, its refining is mainly for export whereas the refining in those countries with greater refining capacity is mainly for domestic consumption, with an export should there be any excess. Given the export-oriented purpose, Singapore spot prices reflect the genuine export costs, which will in turn reflect the petroleum product supply capability and demand in the Asian region.