Oil prices are soaring as the Middle East war chokes crude supplies, but fuel price premiums over crude are climbing even faster as the de facto closed Strait of Hormuz forces refiners in Asia to consider slashing processing rates and limiting exports.
The product market came under more severe stress than the crude markets as the war dislocated oil and fuel supplies and sent jet and diesel premiums over Brent to astronomical highs.
Nowhere has the stress been more severe than in jet fuel cracks and prices, signaling acute price pain for airlines and consumers going forward.
The price of jet fuel at Asia’s key hub Singapore, soared by 140% last week compared to February 27, the day before the war in Iran began.
Singapore’s jet fuel prices hit $230 per barrel.
“If crude had…
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Source oilprice.com
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