Asia refining margins hit 20-month high as sanction risk boosts diesel profits

Refining margins across Asia have surged to nearly US$9 per barrel, the highest in 20 months, driven by strong diesel spreads and supply-threat concerns from U.S. sanctions on Russian oil. The profit jump is narrowing the gap between peaking and trough flows in the region, with Indian and Southeast-Asian refiners benefiting most. Analysts expect margins to sustain above US$7/bbl this quarter if supply constraints persist and demand remains resilient in emerging markets.