Oil soaring to near $100 a barrel is doing little to slow down demand from the biggest buyers as refineries in Asia look to boost processing rates to cash in on a boom in fuel-making profits.
Despite rising crude prices, margins for producing diesel and gasoline have surged to near pre-pandemic levels as inventories run low across the world. A significantly reduced stream of Chinese fuel exports in recent months has left Asia shorter on supply and more sensitive to disruptions as consumption recovers with countries easing virus restrictions.
That means demand for oil continues to be strong in the world’s biggest consuming region even as prices climb to the highest in seven years, adding to inflationary pressure that’s hurting consumers and putting pressure on governments and central banks all over the world.