Iran War Triggers Record Refining Margins as Big Oil Rakes in Profits
A new global refining boom has been triggered by the ongoing war in Iran, sending oil prices and refining margins to multi-year highs.
The conflict has tightened fuel supply as crude oil struggles to move through the Strait of Hormuz, leading to reduced refining throughput in Asia and a temporary Chinese ban on exports.
Despite the slump in crude prices, refined product markets remain tight with refining margins at record highs due to a combination of factors including the wars in Iran and Ukraine.
The International Energy Agency (IEA) warned that 'there is no room for complacency on oil security amid the escalation in hostilities and a continued drawdown of available commercial inventories.'
The world's biggest international oil companies, including Shell, TotalEnergies, ExxonMobil, and Chevron, reported their strongest earnings for the second quarter since at least 2022 due to high refining margins.