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Iran war tightens fuel supply, pushing refining margins to records
The disruption reduced refining throughput in Asia and led to a temporary Chinese ban on exports, helping send refining margins to multi-year highs.
Oil market disruption tied to the war in Iran is tightening global fuel supply and lifting both oil prices and refining margins to multi-year highs, according to OilPrice.
The outlet says crude oil has struggled to move through the Strait of Hormuz, contributing to reduced refining throughput in Asia and prompting a temporary Chinese ban on exports.
OilPrice adds that refining margins have risen to record highs even as crude prices have been volatile, supported by tighter availability of gasoline, diesel, and jet fuel compared with crude supply.
The report also links the refining-driven profit boost to results from major refiners, noting Big Oil posted its highest second-quarter earnings since the Russian invasion of Ukraine in 2022, with gains attributed in part to higher refining and trading contributions.
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