Asian Refiners Face Double Blow to Profits from Iran, Covid
- Complex refining margins have slumped since the end of April
- Still, vaccinations set to increase fuel demand in second half
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Asian refineries are grappling with what’s expected to be a brief period of weak profits as a demand-sapping Covid-19 comeback across the region coincides with a likely surge in oil-product exports from Iran.
The virus resurgence in India and other nations apart from China is reducing consumption of products such as gasoline and jet fuel, squeezing the profit margins of refiners. The market is also bracing for the possibility of a boost to Iranian fuel oil supplies into Asia should a nuclear deal be revived.