Asian Refining Margins Hit 2022 Highs as Hormuz Disruptions Force Processing Cuts

The geopolitical crisis in the Strait of Hormuz has evolved from general price volatility into severe downstream disruptions across Asia. Singapore complex refining margins, the regional benchmark for profitability, have surged to nearly $30 per barrel, marking their highest level since 2022. This spike in margins comes as Asian refiners are forced to cut processing rates and halt fuel exports to manage significant delays in crude oil deliveries. The de facto disruption of the strait is physically restricting the flow of feedstock, creating a supply-side crunch for refined products. Analysts note that while margins are at record highs, these operational challenges and reduced throughput are straining the regional energy balance. Market participants are now focusing on how long these logistical bottlenecks will persist and their broader impact on global fuel availability.