Asia refining margins rocket to highest in nearly 4 years on Hormuz supply disruption

Reuters, March 5, 2026 – Asian refining margins have surged to their highest levels in nearly four years as disruptions in the Strait of Hormuz restrict crude flows and force refiners to cut runs. Singapore complex margins have jumped to around $30 a barrel, with jet fuel and diesel cracks leading the rally as supply concerns intensify. According to Sparta’s June Goh, the squeeze reflects an impending shortage of refinery feedstock, as much of Asia depends on Middle Eastern crude that is now logjammed at Hormuz. With alternative supplies likely to take one to two months to arrive, refiners may continue reducing intake, tightening product markets further.