SINGAPORE- Asian oil refiners are reaping their highest profits ever this week, spurred by higher fuel demand during peak holiday seasons as more economies recover from the COVID-19 pandemic while the region ramps up exports to Europe to replace a Russia shortfall.
Profit margins for a complex refinery in Singapore, the bellwether for Asian refiners, tipped over $20 a barrel on Wednesday.
Gasoline, diesel and jet fuel crack spreads hit new highs of $22, $46 and $36 per barrel respectively amid a transport boom as more economies ease COVID restrictions.
But supply remains tight following lower fuel exports from China and disruption to trade flows of Russian oil due to international sanctions, said Hui Ting Sim, an analyst at Moody’s Investors Service.
“The recent surge in diesel crack spreads driven by shortages in Europe will also push refiners to ramp up output of diesel over gasoline, thereby reducing gasoline supply,” he added. – Reuters
