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

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Published05 MAR 26 - 10:21 Reading time minutes

“This is symptomatic of an impending shortage of feedstocks into the refineries due to the dependency on crude from the Middle East that is currently logjammed at the Strait of Hormuz,” June Goh, senior oil market analyst at Sparta Commodities, told Reuters.

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.

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Author

June Goh

Senior Oil Market Analyst

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