The escalation of the US Iran conflict threatens Asian refineries to increase production, leading to tight global fuel supply

According to Reuters, the escalation of the conflict between the United States and Iran has hindered transportation in the Strait of Hormuz, and Asian refineries are facing delivery delays for their August production plans. According to Energy Aspects calculations, over 3 million barrels per day of Saudi crude oil need to be diverted. FPCC President Lin Ke chang stated that the company had originally planned to increase its operating rate to 480000 barrels per day in August, but due to conflicts, there is uncertainty in the delivery of goods. Russian refining facilities attacked by Ukrainian drones, Moscow restricts diesel exports. Sparta Commodities analyst Neil Crosby stated that global production capacity is insufficient to cope with the dual impact. The profit margin of Asian refineries for diesel and aviation kerosene has jumped to over $65 per barrel, up from $20 before the war.